(1) Any county in which the amount of public funds on hand at the time of the settlement provided for in ORS § 202.210 exceeds the total of its outstanding indebtedness shall, after making the deductions provided for in ORS § 202.210 (3), from the amount of such public funds on hand pay over to the county segregated from it and organized under this chapter or to the county acquiring territory under a change of boundaries, a just proportion of such funds based upon the next last assessed valuations of the original county prior to the date of such segregations and in the proportion which the valuation within the segregated portion bears to the aggregate of the valuation within the whole of the original counties. The county courts shall meet as provided in ORS § 202.210 and ascertain the amount so to be paid.

(2) The county court of the original counties shall issue warrants for such amount, payable immediately to the treasurer of the new county organized under this chapter, or to the treasurer of the county acquiring new territory, and the amounts so received by the latter shall be placed to the credit of the proper funds of the county.