Contracts
In South Dakota, an 'earnest money promissory note' (instead of cash) is:
ANever acceptable as earnest money
BAcceptable as earnest money but has different implications than cash if the buyer defaults✓ Correct
CRequired for commercial transactions only
DAutomatically converted to cash upon acceptance
Explanation
A promissory note can serve as earnest money, but if the buyer defaults, the seller must pursue payment on the note rather than having immediate access to cash funds.
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