1. (a) A statement showing the amount of the reduction of the installments shall be certified to the disbursing officer if:

   1. (1) the property is sold by the sheriff under this chapter and the money collected is insufficient to pay the principal and interest in full; or
   2. (2) a court orders a reduction of principal and interest as assessed.

2. (b) Upon the receipt of the statement, the disbursing officer shall do the following:

   1. (1) Calculate the reduction that applies to each installment.
   2. (2) Enter on the bonds the amount of the reduction when the bonds are presented for payment.

As added by P.L.98-1993, SEC.7.