37-322.02. Payment by purchaser or succeeding lessee for improvements on auctioned land
A. When state lands on which there are improvements for which the owner is entitled to be compensated are offered at an auction for sale or lease, and the purchaser or succeeding lessee is not the owner of the improvements, the purchaser or succeeding lessee shall pay the department at the time of the auction ten per cent of the appraised or remaining unamortized value of the improvements and the balance within thirty days thereafter. The department shall pay the owner of the improvements the payments collected.
B. If the department determines that the amount at which the improvements are appraised is so great that it hinders competitive bidding at an auction for the land, the department may sell the improvements on installments payable ten per cent upon announcement of the successful bidder, fifteen per cent thirty days thereafter and fifteen per cent annually thereafter for five years, together with six per cent interest on the balance remaining unpaid, which amount, until paid, shall be a lien upon the purchaser's or succeeding lessee's interest in the land.
C. The purchaser or succeeding lessee shall at all times keep the insurable improvements insured for the benefit of the owner of the improvements.
D. Payments shall be made at the time and in the manner prescribed for payments on the land or lease, and any default in the payments for improvements shall be deemed a forfeiture in the payments for the land or the lease and of all payments made.