(1) Any claim approved for payment by a governmental entity or any final judgment obtained against a governmental entity shall be paid from funds appropriated or reserved for that purpose or in the discretion of the governmental entity may be paid in not more than ten (10) equal annual instalments commencing the next fiscal year or in such other manner as is agreed upon by the claimant and governmental entity.
(2) Installment payments shall bear interest at six percent (6%) per annum on the unpaid balance.
(3) This section shall be discretionary with the court of original jurisdiction and such court is hereby authorized in its discretion to order a lump sum payment of any final judgment.
(4) All judgments below five thousand dollars ($5,000) must be paid in one (1) installment and must be paid as other tort judgments.