State Codes and Statutes

Statutes > South-dakota > Title-34 > Chapter-20b > Statute-34-20b-79

34-20B-79. Forfeited property taken subject to security interest--Procedure--Exception when secured party had knowledge of unlawful use. Properties, as described in subdivisions 34-20B-70(4), (6), and (7) and § 34-20B-70.1, which are subject to a bona fide perfected security interest at the time of seizure of personal property or in the case of real property, at the time the offense was committed, and forfeited under the provisions of §§ 34-20B-74 to 34-20B-89, inclusive, or § 34-20B-70.1 shall be taken by the chief agent subject to the security interest. Any real property security interest perfected after the time the offense was committed and before seizure of the property commences may not be affected by this section, or § 34-20B-70.1, unless the chief agent proves by a preponderance of the evidence that the secured party had actual knowledge of the offense at the time the secured interest was perfected. Seizure of real property under § 34-20B-70.1 is commenced by filing a notice of lis pendens pursuant to chapter 15-10. The chief agent shall at his option within sixty days of the forfeiture of the properties:
(1) Return the properties to the possession of the secured party;
(2) Satisfy fully all indebtedness to the secured party secured by the properties;
(3) Return the properties to the possession of the secured party and require the secured party to sell within sixty days of receipt of the properties from the chief agent at public or private sale the properties and retain all proceeds necessary to satisfy fully all indebtedness of the secured party secured by the properties together with all reasonable costs of the sale and remit to the chief agent all excess proceeds within thirty days of the sale. If the property to be sold is real property, the secured party may have a reasonable period of time after receipt to effect sale; or
(4) In the case of real property, compensate any co-owner or joint owner whose interest has not been forfeited and whose interest was of record at the time the offense was committed, their proportionate share of that interest or transfer the forfeited interest to the remaining co-owner or joint owner.
If the secured party knew or, except in the case of real property, should have known, that the properties were being used or intended for use to transport, sell or purchase any property described in subdivisions 34-20B-70(1) and (2) or in the violation of the provisions of § 34-20B-70.1, the provisions of this section do not apply to such properties.

Source: SL 1976, ch 250; SDCL Supp, § 39-17-136.1; SL 1982, ch 262, § 4; SL 1989, ch 294, § 2.