The state must keep certain land-sale and donation proceeds as the Free School Fund and pay six percent annual interest on it; the state treasurer must annually collect specified federal monies and credit them to the proper fund.
SUBPART D. PROCEEDS OF SALE §841. Free school fund A. The proceeds of all lands heretofore granted by the United States to this state for the use or support of schools, except the sixteenth section in the various townships of the states specially reserved by Congress for the use and benefit of the people therein; and of all lands granted or bequeathed to the state and not specially granted or bequeathed for any other purpose, which are disposed of by the state, and the ten percent of the net proceeds of the sales of the public land which have accrued and are to accrue to this state under the act of Congress, entitled "An Act to appropriate the proceeds of the public lands", and to grant preemption rights, approved September 4, 1841; and the proceeds of the estates of deceased persons, to which the state has or may become entitled by law, shall be held by the state as a loan, and shall be and remain a perpetual fund, to be called the Free School Fund, on which the state shall pay an annual interest of six percent. The interest, together with the interest of the trust fund deposited with this state by the United States, under the act of Congress approved the twenty-third of June, eighteen hundred and thirty-six, and the rents of all unsold lands, except that of the sixteenth sections, shall be appropriated for the support of public schools in this state; and donations of all kinds which are made for the support of schools, and such other means as the legislature may from time to time set apart for school purposes, shall form a part of the fund, and shall also be a loan on which the state shall pay an interest of six percent per annum. B. The state treasurer shall apply annually, and shall receive from the federal government the ten percent of monies due to this state, and shall place the money, when received, to the credit of the proper fund. Acts 1986, No. 821, §1.