(1) All lands, title to which has or may become vested in the state as the result of foreclosure proceedings, shall be designated as "public school fund lands" and shall be considered an investment of the public school fund.
(2) Such lands shall be under the control and direction of the state board of land commissioners and may be disposed of by the board in the same manner as public school lands; except that any mineral rights acquired under said foreclosure proceedings may be sold with the land. The board shall keep a separate list of all such lands in its office.
Source: L. 73: R&RE, p. 1240, § 1. C.R.S. 1963: § 123-4-3.
ANNOTATION
Annotator's note. Cases relevant to § 22-41-103 decided prior to its earliest source, § 123-4-3, C.R.S. 1963, have been included in the annotations to this section.
The investment in the state of the right to become the purchaser at foreclosure sale constitutes a safeguard against loss which might otherwise result from a borrower's failure to repay a loan, and whatever may be realized from subsequent sale of the property diminishes correspondingly the amount necessary for reimbursement of the school fund. People ex rel. Miller v. Higgins, 69 Colo. 79, 168 P. 740 (1917).
The right to purchase does not impose any liability upon the state. Under this section the state, acting through its proper agents, may become the purchaser of the real estate securing the loan at a foreclosure sale thereof, but it is equally true that it need not become such purchaser. It may resort to any lawful "procedure that may be necessary and appropriate" in the collection of the loan. The statute does not, either directly or indirectly, impose upon the state any liability in the premises. Leddy v. People ex rel. Farrar, 59 Colo. 120, 147 P. 365 (1915); People ex rel. Miller v. Higgins, 69 Colo. 79, 168 P. 740 (1917).