That upon the admission of each of said states into the union, sections numbered sixteen and thirty-six in every township of said proposed states, and where such sections, or any parts thereof, have been sold or otherwise disposed of by or under the authority of any act of Congress, other lands equivalent thereto, in legal subdivisions of not less than one-quarter section, and as contiguous as may be to the section in lieu of which the same is taken, are hereby granted to said states for the support of common schools, such indemnity lands to be selected within said states in such manner as the Legislature may provide, with the approval of the secretary of the interior; provided, that the sixteenth and thirty-sixth sections embraced in permanent reservations for national purposes shall not, at any time, be subject to the grant nor to the indemnity provisions of this act, nor shall any lands embraced in Indian, military or other reservations of any character, be subject to the grants or to the indemnity provisions of this act until the reservation shall have been extinguished and such lands be restored to, and become a part of, the public domain. 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).