77-2-337. Disposition of sale proceeds. (1) Except as provided in 77-2-362 and subsection (3) of this section, the proceeds from the state land sold, including all subsequent payments on the principal, must be credited to the permanent fund arising from the grant to which it belongs and must become and forever remain an inseparable and inviolable part of the permanent fund.

(2) All payments on interest must be credited to the proper income fund and must be available for use as provided by law.

(3) (a) Proceeds from the sale of any state trust land, as authorized by 77-2-361 through 77-2-367, must be deposited into the state land bank fund established in 77-2-362 to be used for the purposes described in 77-2-362 and 77-2-364 for the long-term financial benefit of the beneficiaries for whom the funds were deposited.

(b) If the proceeds from the sale of state trust land, as authorized by 77-2-361 through 77-2-367, are not used for the purposes described in 77-2-362 and 77-2-364, the proceeds from the sale and any earnings on the proceeds must be deposited pursuant to subsection (1) of this section.