Bankruptcy Act Proceedings.
The fact that land being sold under contract to a bankrupt farmer was a part of the trust funds created by the Enabling Act did not exclude the land from administration under Bankruptcy Act proceedings. North Dakota v. Hegstad, 134 F.2d 598 (8th Cir. 1943).A bankrupt whose land is sold to the state on foreclosure of a mortgage securing a loan of permanent school funds may redeem by payment of the value of the land as fixed under the provisions of the Federal Bankruptcy Act, even though for less than the amount required for redemption under state law. North Dakota v. Towner County, 142 F.2d 48 (8th Cir. 1944).
Permanent School Fund.
The entire grant of land to the state for educational purposes was in trust and the express terms of the grant required the state as trustee to maintain the permanency of the funds acquired through the grant. The state is limited to the use of the interest from the permanent fund and the interest shall be used only for the support of schools. State ex rel. Bd. Of Univ. & Sch. Lands v. McMillan, 12 N.D. 280, 96 N.W. 310 (1903), distinguished, Lang v. City of Cavalier, 59 N.D. 75, 228 N.W. 819 (1930).The assembly cannot divert nor authorize diversion of any part of the principal or interest or income from the investment of funds under the control of the board of university and school lands arising from the rental or sale of lands granted by the United States to any purposes other than those for which grants were made and any diversion to other purposes or any donation thereof in aid of an individual, by the assembly directly, or by the board of university and school lands by legislative enactment is unconstitutional. State ex rel. Sathre v. Board of Univ. & Sch. Lands, 65 N.D. 687, 262 N.W. 60 (1935).
