South Dakota § 54-1-10 - Securitization transaction--Transferor to lose interest in transferred property.

§ 54-1-10. Securitization transaction--Transferor to lose interest in transferred property.

Notwithstanding any other provisions of law specifically including § 57A-9-623, to the extent set forth in the transaction documents relating to a securitization transaction:

(1)    Any property, assets, or rights purported to be transferred, in whole or in part, in the securitization transaction shall be deemed to no longer be the property, assets, or rights of the transferor;

(2)    A transferor in the securitization transaction, its creditors or, in any insolvency proceeding with respect to the transferor or the transferor's property, a bankruptcy trustee, receiver, debtor, debtor in possession, or similar person, to the extent the issue is governed by South Dakota law, has no rights, legal or equitable, whatsoever to reacquire, reclaim, recover, repudiate, disaffirm, redeem, or recharacterize as property of the transferor, any property, assets, or rights purported to be transferred, in whole or in part, by the transferor; and

(3)    In the event of a bankruptcy, receivership, or other insolvency proceeding with respect to the transferor or the transferor's property, to the extent the issue is governed by South Dakota law, such property, assets, and rights may not be deemed to be part of the transferor's property, assets, rights, or estate.

Source: SL 2003, ch 241, § 2.