If any purchaser of state land after receiving a certificate of purchase, as provided in this chapter, shall fail to make any of the payments stipulated therein, and the same remains unpaid for thirty (30) days after the time when it should have been paid as specified in such certificate, the director of the department of lands shall, by certified letter addressed to such delinquent purchaser at his last known post-office address, notify such purchaser of such delinquency and of the amount due, and that unless such amount be paid within sixty (60) days after the date of mailing such letter and notice, the board will declare all rights of the purchaser in and to said land forfeited and the certificate and contract relating thereto annulled.
After the expiration of said period of sixty (60) days, the state board of land commissioners shall declare such forfeiture, and shall annul said contract and certificate. Such action of the board shall be recorded in the minutes of the proceedings of the board. When such forfeiture shall have been declared and entered in the minutes, as hereinbefore provided, all rights of such purchaser in and to said lands shall be and are extinguished and the state board of land commissioners may sell the land again: provided, that unless other disposition has meanwhile been made of the land, said state board of land commissioners may, upon application of the former purchaser, if such application is made within two (2) years after the certificate has been canceled, reinstate any such canceled certificate upon compliance by the purchaser with such conditions as the board may impose. Such conditions to be imposed by the board shall include the funding of delinquent instalments of principal and interest accrued to the date of reinstatement, by distributing the same in annual payments, to commence with the expiration of the original period covered by the contract of sale, or any extension or extensions thereof, such deferred payments to draw interest from the date of the reinstatement of the certificate; but the board may, in its discretion, impose other conditions, and may, in its discretion, require the payment of such delinquencies in cash at the time of reinstatement. On reinstatement being made the board may, in its discretion, give credit to the purchaser, as for interest paid on his contract, of any amounts which may have been paid by the purchaser as rent of the land during the period of the cancellation of his certificate. Any and all reinstatements of certificates of purchase of state lands heretofore made by the state board of land commissioners are hereby legalized and validated: provided further, that in case of such default and declaration of forfeiture except as provided for in this section, all previous payments made by a purchaser on account of such land shall be forfeited to the state, and the title and right of possession to such land shall be in the state as if no sale had ever been made.