If recovery on the bond should be inadequate to pay the amounts found due all such persons, judgment shall be given to each person for his pro rata of the amount of recovery. The surety company may pay into court for distribution among such claimants and creditors the full amount of the penalty named in the bond, less any amount which such surety company may have paid to the public corporation by reason of the execution of such bond, and upon so doing the surety company shall be relieved from further liability.
S.D. Codified Laws § 5-21-7
Pro rata distribution among claimants if bond insufficient--Surety relieved from liability by payment into court
Applied in 1 court decision — leading case State Ex Rel. Farmers State Bank v. Kuipers Const. Co. (1971)
Most recently applied in State Ex Rel. Farmers State Bank v. Kuipers Const. Co. (October 1971)
Source: SL 1907, ch 138, § 2; RC 1919, § 8216; SDC 1939, § 65.0703; SL 1939, ch 300, § 8.
Official source: South Dakota Legislature. Reproduced from public-domain South Dakota statutes; confirm against the official source for the current text. Not legal advice.