37-251

37-251. Issuance of patents for state
lands

A. Upon filing the certificate of purchase, together with evidence of full payment
of principal and interest, for the entire tract of land sold, and evidence that all terms
and conditions of the certificate of purchase have been satisfied, the department shall
issue to the purchaser a patent under the seal of the state, signed by the governor and
countersigned by the secretary of state.

B. On application by the purchaser a patent for less than the entire tract may be
issued to the purchaser if the commissioner finds that it is in the best interest of the
applicable trust, subject to the following:

1. The parcel to be patented may consist of one or more pieces of land, described
either by metes and bounds or by legal subdivision.

2. A patent shall not be issued for less than one-fourth of the tract sold or less
than ten acres, whichever is smaller, except that:

(a) If the original tract is less than forty acres, a patent may be issued for
parcels of not less than five acres each.

(b) In the case of a right-of-way the actual parcel needed for the right-of-way may
be patented.

3. Before any parcel less than the entire tract is patented the department shall
determine that the remaining lands are of greater value than the unpaid balance of the
certificate of purchase and that the remaining lands have development potential
independent of the acreage that is being patented. Before patenting, the commissioner
shall require to be paid an amount, on the lands to be patented, in excess of the
purchase price per acre of the entire tract until the total price of the entire tract has
been paid. In establishing the amount to be paid for the partial patent the commissioner
shall take into account the amount of the down payment made on the entire tract. Nothing
in this paragraph affects certificates of purchase issued before September 30, 1988.

4. When paid, the partial purchase price shall be credited on the total purchase
price stated in the certificate of purchase. The department may issue a supplement to
the certificate of purchase deleting the land patented and reducing the amount of each of
the remaining annual installments to that amount which, when all installments are paid in
full, will discharge the entire unpaid balance due on the original certificate of
purchase.

C. Any land patented under this section is subject to existing valid rights-of-way.

D. If the purchaser has died, and the land described has been sold and confirmed by
order of court, the patent shall be issued to the purchaser to whom confirmation of sale
was made. If the estate of the deceased person is distributed by order of the court, the
patent shall be issued to the heirs of the deceased person, or to the person to whom the
lands are distributed. Patents issued to a deceased person shall inure to the benefit of
the heirs or assigns of the deceased person.

E. If an assignment of the certificate of purchase has been filed with and approved
by the department, the patent shall be issued to the assignee, and if proper evidence of
a transfer of the certificate by operation of law is filed with the department, the
patent shall be issued to the transferee.

F. A record of all patents issued shall be kept in the records of the department.