Iowa Code § 306.26

Payment of damages and right-of-way cost — proceeds of sale
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Damages allowed on account of the vacation of any highway and costs incident thereto, right-of-way or land purchased or condemned for or on account of any highway and costs incident thereto, and the funds received from the sale or rental of any highway right-of-way orland, shall bepaid from or credited to,asthe case may be, the road fund or funds applicable to said highway or highway system.

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