§ 36-7-509 — Authority to purchase water rights; lease and sale; disposition of moneys received

(a) The board of land commissioners is hereby authorized
to purchase water rights or proportionate interests in canals,
reservoirs or irrigation systems for the purpose of reclaiming
school and other granted lands. Lands for which water rights
become appurtenant may be leased by the board at a price which
will return an equitable income, or may be sold upon the
following terms and conditions:
(i) The land shall be offered at public auction at
the front door of the courthouse of the county in which the land
is situated, after being advertised for four (4) weeks, as
required by law;
(ii) Thirty percent (30%) of the purchase price of
the land must be paid in cash on the day of sale;
(iii) The purchaser shall, before the sale is
consummated, enter into a contract for the purchase of a water
right or proportionate interest in the irrigation system which
will supply water for the said land, which may be conditioned on
not to exceed twenty (20) annual payments with interest at six
percent (6%) per annum;
(iv) Delinquent payments shall bear interest at the
rate of eight percent (8%) per annum until paid.
(b) Moneys received for the sale of land, and the interest
thereon, shall be placed in the proper permanent land fund
account in accordance with the purpose for which the land was
granted to the state. Moneys received from the sale of water
right contracts and the interest thereon shall be turned in to
the state treasury to the credit of the general fund.