(a) Paying agents with whom the state or any political subdivision of the state has deposited or shall deposit funds for the payment of obligations of the state or of any political subdivision of the state shall remit to the Treasurer of State all the funds that have been in the paying agents' hands for a period of three (3) years.
(b) The Treasurer of State shall invest these funds from paying agents in government or state bonds that the Treasurer of State shall hold in trust for the holders of the obligations for the payment of which the funds were deposited with the paying agents.
(c) On the presentation to the Treasurer of State of any valid obligation that was payable out of any fund remitted to the Treasurer of State by a paying agent, the Treasurer of State shall sell the bonds purchased with the fund and redeem the obligation.