Section 21. Cancellation of unpaid checks or drafts

Checks or drafts of any municipal corporation, district corporation or
  school district which shall have been outstanding for more than one year
  from  the  respective  dates  thereof, shall be cancelled and the amount
  thereof returned to the fund which was originally charged. Prior to such
  cancellation, the bank or banks on which  such  checks  or  drafts  were
  drawn  shall  be notified, by the fiscal officer or other officer having
  responsibility for issuance of such checks,  not  to  pay  the  same.  A
  complete and accurate record of all checks and drafts so cancelled shall
  be  maintained.  The  amount  of  any  such check or draft shall be paid
  without interest in the same manner as any  other  claim  presented  for
  payment  within  six  years from the original date of issuance, from any
  moneys legally available, to  the  lawful  holder  thereof,  or  in  the
  absence  of  such  check  or  draft,  to  the  person or entity lawfully
  entitled to payment  upon  submission  of  a  voucher  and  a  statement
  accounting for such absence. For purposes of such payment, the governing
  body  of  the  municipal  corporation,  district  corporation  or school
  district may establish an appropriation containing moneys sufficient  to
  pay  the  amounts  of  any  outstanding  checks  or  drafts which may be
  presented.