The state board of higher education has the power, and the state shall incur no liability whatever by reason of the exercise of the authority granted to the board of higher education by this chapter:

1.    To take all necessary and proper action and proceedings to carry out the terms and provisions of this chapter and to do and perform all of the acts and duties imposed upon said board.

2.    To lease from an institutional holding association, its successors or assigns, the site, dormitory, and equipment, or any of them, for a term of not to exceed fifty years, to be    used and operated by the board solely for educational purposes in connection with one of the educational institutions enumerated in this chapter. Such lease must provide for the payment to such association, its successors or assigns, of a net cash annual rental of not more than fifteen percent of the cost of the site, dormitory, and equipment, but at least equal to an amount sufficient to pay the interest on the bonded indebtedness of the association and to retire its serial bonds as they mature. The annual rental shall be payable solely and exclusively out of the income derived from the operation of the dormitory.

3.    To purchase from an institutional holding association, its successors or assigns, the site, dormitory, and equipment, or any of them, at a price not to exceed the cost of the same, to be used and operated by said board solely for educational purposes in connection with one of the educational institutions enumerated in this chapter. Such purchase price shall be payable for not more than fifty years, in annual installments of not more than fifteen percent of the purchase price, at a rate of interest of not more than five percent per annum, payable semiannually, and shall be payable solely and exclusively out of the income derived from the operation of such dormitory.