20-4-9. Application of performance in absence of selection by parties.
If neither party makes application pursuant to §20-4-7 or §20-4-8 within a reasonable time after performance, the performance must be applied to the extinction of obligations in the following order; and if there be more than one obligation of a particular class, to the extinction of all in that class, ratably:
(1)Of interest due at the time of the performance;
(2)Of principal due at that time;
(3)Of the obligation earliest in date of maturity;
(4)Of an obligation not secured by a lien or collateral undertaking;
(5)Of an obligation secured by a lien or collateral undertaking.
Source: CivC 1877, §833, subdiv 3; CL 1887, §3457, subdiv 3; RCivC 1903, §1150, subdiv 3; RC 1919, §757 (3); SDC 1939, §47.0207 (3).