37-241

37-241. Terms of sale of state land; payment;
interest rate

A. The terms of sale of state land are as follows:

1. At least ten per cent, but not more than twenty-five per cent, of the appraised
value, as stated in the auction notice, which shall be applied to principal, together
with the required fees prescribed pursuant to section 37-107, shall be paid by cashier's
check upon announcement of the successful bidder.

2. If the amount bid for the land exceeds the appraised value, further payment
shall be made within thirty days so that the total amount paid including the amount paid
on the date of sale shall equal the percentage of the bid, as stated in the auction
notice, which shall be allocated to principal, together with the required fees prescribed
under section 37-107.

B. Upon payment of the amounts provided in subsection A of this section, and upon
compliance by the purchaser with the requirements of this article, and the payment of the
fees under section 37-107, a certificate of purchase shall issue as provided in section
37-244. On full payment for the entire tract of land sold within thirty days after the
auction, the department shall issue a patent as provided in section 37-251.

C. If the purchaser fails to complete the payment of the percentage of the bid
stated in the auction notice, together with the fees required pursuant to section 37-107,
or to enter into a contract of sale within the time provided in the certificate of
purchase offered by the department:

1. The purchaser forfeits all amounts paid, including:

(a) All payments made on the purchase price, which shall be deemed to be rental for
the land.

(b) All amounts paid under section 37-107.

2. The commissioner may declare that the bid placed before the final bid accepted
is the highest bid, and that bidder has five business days after notification by the
department to pay by cashier's check all amounts due under this section and section
37-107.

D. The balance of the purchase price is payable as follows:

1. The commissioner shall establish prior to the notice of sale the length of the
term over which the balance shall be paid, and whether a variable or fixed interest rate
is appropriate, or whether the entire balance without interest is due and payable within
thirty days after the auction. This determination shall be based on the nature of the
land being sold and general market conditions in effect at the time.

2. After establishing the length of the term and whether a fixed or variable rate
is appropriate, the commissioner shall notify the state treasurer to establish the
interest rate after consideration of local prevailing prime interest rates and mortgage
rates and the maximum amount of interest set by statute by this state, if any.

3. If a variable rate is established, the interest rate charged a purchaser may
vary from year to year. The department shall annually notify each purchaser of the
interest rate specified by the state treasurer to be paid by the purchaser for the
following year and the total amount of interest payable the following year with the
purchaser's annual payment.

E. The commissioner shall establish prior to the notice of sale the length of the
term over which the balance shall be paid. The term shall not exceed twenty-five years.

F. The length of term and interest rate and whether the rate is variable or fixed
shall be considered terms of the sale to be included in the notice required by section
37-237.

G. The purchaser may discharge the entire debt at any time and be entitled to a
patent for the land if the purchaser pays the entire purchase price, together with the
applicable fees, and demonstrates that all terms and conditions of the certificate of
purchase have been satisfied.