A water user district may indemnify any person who was or is a party or is threatened to be made a party to any pending or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative by reason of the fact that the person is or was a director, officer, employee, or agent of the water user district or is or was serving at the request of the water user district as a director, officer, employee, or agent or another corporation, limited liability company, partner–joint venture, trust, or other enterprise, against expenses including attorneys’ fees, judgments, fines, and amounts paid in settlement actually and reasonably incurred by the person in connection with the action, suit, or proceeding if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the water user district and, with respect to any criminal action or proceeding, had no reasonable cause to believe the person’s conduct was unlawful. However, this section does not apply to any action by or in the right of the water user district.

Source: SL 1979, ch 300; SDCL Supp, § 46-16-37.1; SL 1994, ch 351, § 114.