Section 54-9-5 - Assignment invalid against creditor of assignor not assenting thereto.
54-9-5. Assignment invalid against creditor of assignor not assenting thereto. An assignment for the benefit of creditors is void against any creditor of the assignor not assenting thereto, in the following cases:
(1) If it provides preference or priority to any creditor over any other creditor except as provided in this chapter;
(2) If it provides for the payment of any claim known to the assignor to be false or fraudulent; or for the payment of more upon any claim than is known to be justly due from the assignor;
(3) If it reserves any interest in the assigned property, or in any part thereof, to the assignor or for his benefit, before all his existing debts are paid, other than property exempt by law from execution;
(4) If it confers upon the assignee any power which, if exercised, might prevent or delay the immediate conversion of the assigned property to the purposes of the trust;
(5) If it exempts him from liability for neglect of duty or misconduct.
Source: CivC 1877, § 2030; CL 1887, § 4663; RCivC 1903, § 2375; RC 1919, § 2048; SDC 1939 & Supp 1960, § 37.5103; SL 1969, ch 162, § 1.