As used in this subchapter, the following definitions apply, except where the context clearly indicates otherwise:

(1) "Annual rate of return" means the annual return divided by the asset value multiplied by 100%.

(2) "Annual return" means the net annual income.

(3) "Asset value" means the value of an asset as determined by appraisal or purchase price.

(4) "Bid" means a written or oral monetary commitment to purchase land or interest in land offered at the specified time and place by a person eligible to participate in an auction, as specified by the department in accordance with 77-2-363 , MCA.

(5) "Bid bond" means bid deposit, as defined in (6) .

(6) "Bid deposit" means a certified check or cashier's check drawn on any Montana bank equal to 50% of the minimum sales price submitted in connection with a bid as an assurance of the performance of a contractual or promissory requirement.

(7) "Board" means the state board of land commissioners.

(8) "Current annual rate of return" means the average annual return for three years divided by the purchase price and multiplied by 100%.

(9) "Department" means the department of natural RESOURCES AND CONSERVATION.

(10) "Earnest money" means a sum of money paid by a prospective purchaser as proof of that person's intention to complete the purchase transaction.

(11) "Lessee" means the current lease holder of any agricultural, grazing, commercial, cabin or home site, or other surface lease of state trust land.

(12) "Net annual income" means total revenues from all sources less total average expenses from all sources based on all available cost information, including information in the "Report on the Return on Asset Value by Trust and Land Office for State Trust Land."

(13) "Parcel" means one section or less that can be identified by legal description, independent of any other parcel of land, using documents on file in the records of the county clerk and recorder's office or in the department's records.

(14) "Report on the Return on Asset Value by Trust and Land Office for State Trust Land" means the annual report produced to analyze the rates of return originating on trust land on land classified as forest, agricultural and grazing, and other.

(15) "Tract of record" means a distinct portion of land, irrespective of ownership, that can be identified by legal description, independent of any other portion of land, using documents on file in the records of the county clerk and recorder's office.

(16) "20-year average annual rate of return" means the sum of the annual rates for return for the most recent 20 consecutive years divided by 20.