SDCL § 57A-3-422: Circumstances under which issuer of dishonored check liable--Reasonable costs and expenses.

Any person who issues a check or other draft to the state or any of its political subdivisions that is not honored for any of the following reasons upon presentation is liable for all reasonable costs and expenses of collection:

(1) The drawer's account is closed;

(2) The drawer's account does not have sufficient funds; or

(3) The drawer does not have sufficient credit with the drawee.

The costs and expenses provided for in this section are considered reasonable if they do not exceed forty dollars.

Source: SL 1989, ch 420; SDCL § 57A-3-421; SL 2000, ch 144, § 4; SL 2015, ch 245, § 1.