(1) Under the supervision of the director of the department of administration or the director's designee, the city treasurer or town clerk shall draw a treasurer's check for the amount of unencumbered cash in the city or town treasury. The check must be made payable to and delivered to the county treasurer of the county in which the disincorporating city or town is situated.
(2) The county treasurer shall immediately place the money in a special fund, to be drawn upon as provided in this part.