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Whenever, the register finds that because of the donation by congress of all the overflowed and swamp lands to the state there are no public lands in the Southeastern Land District of this state on which may be located the school land warrants sold for the benefit of certain townships in the district, he shall receive and cancel all such warrants as may be presented for that purpose and pay to the legal possessors thereof or to their orders the full amount received by the state on account of the warrants.  The money shall be taken from that fund in the treasury which was credited by the sale of the warrants.