(a) Select as indemnity lands such vacant government lands as may be applied for by legal applicants, upon receipt of their applications to purchase, together with the nonmineral affidavit and filing fees, as required by the rules and regulations of the Bureau of Land Management, and a payment fixed by the Department of State Lands; and
(b) Upon return of a copy of the selection list approved by the appropriate officer of the United States, pay over to the State Treasurer moneys received on account of the purchase price of such lands.
(2) When such lands have been clear listed or patented to the state by the United States, the department shall issue deeds or certificates to the applicants. However, no certificate or deed shall be issued for indemnity lands until the same have been patented to the state by the United States. If the state fails to secure patent, the money so received shall be repaid to the applicant upon proper application to the department and surrender of the director’s receipt. [Formerly 273.540]