In cases where real estate owned by institutions, corporations, or unincorporated associations, which have received appropriations of money made by the Commonwealth for the structures, erections, or permanent improvements of any kind, and for which the Commonwealth shall have a lien as herein provided, or as provided by any other act of Assembly, shall be sold or taken by eminent domain, and other property of equal or greater value be acquired by such institutions, corporations, or unincorporated associations, the Auditor General shall, upon the entry of a lien upon such acquired property in favor of the Commonwealth for an amount equal to that theretofore existing, release the real estate from the lien to which it was theretofore subject.

In cases where any such structures, erections, or improvements, are destroyed or damaged by fire or other casualty, against which insurance is carried by the institution, corporation, or unincorporated association, the proceeds of such insurance, if carried for the benefit of the Commonwealth to protect its lien, may, with the consent of the Department of Welfare, be expended for the rebuilding and reequipping, or the repair, as the case may be, of the property covered by the lien of the Commonwealth, or of any part thereof. Any such insurance proceeds made payable to the Commonwealth are hereby appropriated to the Department of Welfare for such purposes. In all such cases the original lien shall continue and shall attach to the new construction, equipment or repairs.