(1) In all cases in which a certificate of purchase of state lands has been canceled and annulled as provided by law and the lands under the certificate have not been resold to another purchaser, the board may in its discretion reinstate the canceled certificate upon:
(a) proper application made in writing by the original purchaser or the original purchaser's heirs, assigns, or devisees, filed within 1 year and 6 months from the cancellation;
(b) payment of all delinquent installments of principal and interest on the certificate, together with penalty interest at the rate of 6% a year upon all delinquent installments from the date due until the date of actual payment; and
(c) the furnishing of proof from the county treasurer showing that there are no tax liens against the land.
(2) This reinstatement does not have the effect of canceling any lease that the state may have issued on the land or affecting any of the provisions of the lease.