Whenever any purchaser of state lands holding a certificate of sale therefor has paid three-fifths or more of the purchase price thereof, the Director of the Department of State Lands may execute a deed conveying the lands to such purchaser, upon the purchaser’s executing:
(1) A note for the remainder of the purchase price; and
(2) A mortgage on the premises in the same form and manner as other mortgages are executed for loans from the Common School Fund under ORS 327.405 to 327.480.