Prior to final settlement on any claim covered by Section 3.08.020 of this chapter, the insurer or insurers shall contact the county treasurer, Butler County, Kansas, to determine whether any such encumbrances are presently in existence. If the same are found to exist, the insurer or insurers shall execute and transmit in an amount equal to that owing under the encumbrances a draft payable to the county treasurer, Butler County, Kansas. (Prior code § 13-503)