The parish governing authority shall, in proper time and manner, levy a tax sufficient to pay the interest upon all the bonds of each series as it accrues and to pay the principal as it matures.  The sums so levied shall pay the principal or interest of the corresponding district bond.  All district bonds and coupons when paid in accordance with their terms shall be lodged with the State Treasurer, who shall cancel the liquidation bonds and coupons corresponding thereto.  When all the bonds of any series are thus cancelled by payment of the corresponding district bonds, the State Treasurer shall mutilate them so that they cannot be reissued and shall return them to the treasurer of the parish which issued them.