South Dakota Code § 15-9-23

Action by assignee subject to setoff or defense--Negotiable instruments excepted
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In case of an assignment of a thing in action, the action by the assignee shall be without prejudice to any setoff or other defense existing at the time of, or before notice of the assignment; but this section shall not apply to a negotiable promissory note or bill of exchange, transferred in good faith and upon good consideration before due.

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