43-37-12. Loan for use or exchange–Indemnification of borrower by lender for damages for defects.
The lender of a thing for use or for exchange must indemnify the borrower for damages caused by defects or vices in it, which he knew at the time of lending and concealed from the borrower.
Source: CivC 1877, §§1083, 1091; CL 1887, §§3707, 3714; RCivC 1903, §§1403, 1410; RC 1919, §§1026, 1033; SDC 1939, §38.0209.