49-36-18. Interest in district contracts prohibited--Violation as ground for removal from office--Interest as voiding obligation under contract.
No officer, employee, or member of the board of directors of a consumers power district may be interested, directly or indirectly, either by himself or herself, or by agent, in any contract to which the district, or anyone for its benefit, is a party, and any such officer, employee, or director who shall have such an interest shall be subject to removal from office therefor by the board, subject to review of such action by the circuit court for the county in which the district maintains its principal place of business. Such interest in any contract by an officer, employee, or director shall void the obligation thereof on the part of the district.
This section does not apply to any contract of the district for the purchase or sale of power, energy, or any other products or services between the district and any political subdivision or public corporation, another consumers power district, or nonprofit cooperative financed in whole or in part by the Rural Electrification Administration or any other federal agency.
Source: SL 1950 (SS), ch 17, §55; SDC Supp 1960, §52.1755; SL 1998, ch 276, §25.