(2) Where lands, other than submersible lands and unsurveyed or unpatented swamp lands have been sold and the state cannot convey title to the purchaser, the Department of State Lands shall repay the purchaser, or the heirs or assigns of the purchaser, all sums which may have been paid to the department on the purchase price of the lands, including the interest paid upon deferred payments, upon the presentation of a proper application for repayment, satisfactory proof and the surrender of the certificate; or if deed has been issued, upon reconveyance by executed and recorded quitclaim deed of whatever title or color of title was received from the state.
(3) Where a certificate of sale has been issued by the department upon a fraudulent application and the certificate is held by assignment by a third party who had no knowledge of the fraud at the time of assignment, the department may refund to the holder such sums as were paid the department on the purchase price of the lands covered by the certificate, including the interest paid upon deferred payments, upon the holder making proper application to the department for repayment and surrendering for cancellation the certificate and assignment. [Formerly 273.480; 1969 c.594 §24]