(a) Educational, ecclesiastical, or municipal corporations may convey by deed the fee simple in lands the title to or use of which is held by such corporations under State or colonial grant for purposes defined in such grants. Such conveyance may be made to the owner and holder of leasehold rights in such land if such lands are then held under lease, but shall not be made to other than such holders of leasehold interests except subject to such leasehold interest, if any, or simultaneously with the extinguishment thereof.

(b) Such lands may be condemned in accordance with and in the manner provided by law.

(c) The funds received in consideration of such conveyance or awarded such corporations as damages in condemnation proceedings shall be kept intact, in trust, by such corporations as endowment funds, and the income only shall be used for the purposes for which such lands were originally granted.

(d) Such lands as may be sold, conveyed, or condemned as provided in this section shall thereafter be subject to taxation as are other lands.