South Dakota § 57A-9-407 - Ineffective prohibitions or restrictions in lease agreement.
Full text of South Dakota South Dakota Codified Laws § 57A-9-407 — Ineffective prohibitions or restrictions in lease agreement., with citation guidance and answers to common questions.
§ 57A-9-407. Ineffective prohibitions or restrictions in lease agreement.
(a) Except as otherwise provided in subsection (b), a term in a lease agreement is ineffective to the extent that it:
(1) Prohibits, restricts, or requires the consent of a party to the lease to the assignment or transfer of, or the creation, attachment, perfection, or enforcement of a security interest in, an interest of a party under the lease contract or in the lessor's residual interest in the goods; or
(2) Provides that the assignment or transfer or the creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the lease.
(b) Except as otherwise provided in § 57A-2A-303(7), a term described in subsection (a)(2) is effective to the extent that there is:
(1) A transfer by the lessee of the lessee's right of possession or use of the goods in violation of the term; or
(2) A delegation of a material performance of either party to the lease contract in violation of the term.
(c) The creation, attachment, perfection, or enforcement of a security interest in the lessor's interest under the lease contract or the lessor's residual interest in the goods is not a transfer that materially impairs the lessee's prospect of obtaining return performance or materially changes the duty of or materially increases the burden or risk imposed on the lessee within the purview of § 57A-2A-303(4) unless, and then only to the extent that, enforcement actually results in a delegation of material performance of the lessor.
Source: SL 2000, ch 231.
Source: official South Dakota text · Last verified 2026-08-27
Frequently Asked Questions About South Dakota § 57A-9-407
What does South Dakota Codified Laws § 57A-9-407 cover?
Section 57A-9-407 ("Ineffective prohibitions or restrictions in lease agreement.") is part of the South Dakota Codified Laws, the codified statutory law of South Dakota. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite South Dakota § 57A-9-407?
A common citation format is "South Dakota Codified Laws § 57A-9-407" (South Dakota). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of South Dakota law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the South Dakota official source linked on this page or consult a licensed South Dakota attorney.
How does South Dakota § 57A-9-407 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in South Dakota can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in South Dakota.