Unless a contrary intention appears, an indemnity against claims or demands, or liability, expressly, or in other equivalent terms, embraces the costs of defense against such claims, demands, or liability incurred in good faith, and in the exercise of reasonable discretion.

Source: SDC 1939, § 31.3107 (3); repealed SL 1966, ch 111, § 5; re–enacted SL 1967, ch 235, § 7.