South Dakota Code § 46A-18-35

Indemnification of officers, employees, and agents
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A water project district may indemnify any person made a party or threatened to be made a party to any action, whether civil, criminal, administrative, or investigative in his capacity as director, officer, employee, or agent of the district or by serving at the request of the district in another enterprise. The indemnity may include reasonable expenses paid in settlement and incurred by him in connection with the action if he has acted in good faith, believed his actions to be in the best interests of the water project district or had no reasonable cause to believe his conduct unlawful. However, this section does not apply to any action by the water project district.

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