Free South Dakota Secured Promissory Note Forms

South Dakota Secured Promissory Note Overview

A secured promissory note in South Dakota is a loan agreement where the borrower pledges specific collateral to guarantee repayment. South Dakota law governs the creation, perfection, and enforcement of security interests under the Uniform Commercial Code (UCC) as adopted by the state. The maximum interest rate for most loans in South Dakota is No cap (deregulated).

No usury cap; South Dakota eliminated usury limits in 1980; interest rate governed entirely by contract. Lenders should verify that the agreed-upon interest rate complies with South Dakota's usury laws before finalizing the note. Charging interest above the legal limit can result in severe penalties, including forfeiture of interest and potential civil liability.

For secured notes involving real property in South Dakota, non-judicial (power of sale) and judicial foreclosure applies. Understanding your state's foreclosure process is critical because it determines the timeline, costs, and lender's rights in the event of borrower default.

South Dakota Legal Requirements

South Dakota has specific requirements for secured promissory notes. Here's what you need to ensure your note is enforceable under SD law:

Essential Elements

• Written Agreement: The note must be in writing, signed by the borrower, and clearly state the loan terms
• Compliant Interest Rate: Must not exceed South Dakota's No cap (deregulated) usury cap
• Collateral Description: Specific, identifiable description of all pledged property
• Security Agreement: Grant of security interest signed by the borrower (debtor)
• UCC-1 Filing: Filed with the Secretary of State, UCC Central Filing Office for personal property collateral
• Default Provisions: Clear events of default, cure periods, and remedies including foreclosure/repossession rights

UCC Filing in South Dakota

To perfect a security interest in personal property in South Dakota, the lender must file a UCC-1 financing statement with the Secretary of State, UCC Central Filing Office. This public filing puts other creditors on notice and establishes the lender's priority in the collateral.

South Dakota Foreclosure & Repossession

South Dakota uses non-judicial (power of sale) and judicial foreclosure for real property collateral. For personal property (vehicles, equipment, inventory), the lender generally has the right to repossess the collateral without court action, provided it can be done without breaching the peace.

Regarding deficiency judgments in South Dakota: Yes. The lender must follow South Dakota's specific procedures for disposing of collateral in a commercially reasonable manner, providing proper notice to the borrower before any sale.

Sample South Dakota Secured Promissory Note

Below is a preview of our South Dakota-specific secured promissory note. Your customized document will include all terms compliant with SD law.

South Dakota Secured Promissory Note FAQ

Answers to common questions about secured promissory notes, UCC filings, and collateral requirements in South Dakota.

Official South Dakota Resources

Use these official resources to verify South Dakota requirements, file UCC documents, and access state legal information.

Other South Dakota Promissory Note Types

Need a different type of promissory note for South Dakota? We offer state-specific templates for every type.