There is hereby established in the state treasury a special fund to be designated and hereafter referred to as the Assessors' Reappraisal and Reassessment Loan Guarantee Security Fund. The sum of six million dollars is allocated to this fund.
The state treasurer shall disburse to the Louisiana Tax Commission such funds as are appropriated by the legislature out of the Assessors' Reappraisal and Reassessment Loan Guarantee Security Fund to pay loans which the chairman of the Louisiana Tax Commission has certified have been defaulted and as to which the guarantee obligation of the state is due.
The attorney general of the state of Louisiana shall be notified of all defaulted loans which the state has guaranteed and paid due to default. He shall institute all necessary legal proceedings in order to insure repayment to the state of the defaulted loan. All funds collected by the attorney general from such proceedings shall be paid into the state general fund.