Indiana Code Title 5. State and Local Administration § 5-1.2-13-13

(1) The state may, through the attorney general and on behalf of the authority, file a suit in the circuit or a superior court with jurisdiction in the county in which the participant is located to recover the amount that the participant owes the flood control fund.

(2) The state comptroller may, after a sixty (60) day written notice to the participant, withhold the payment and distribution of state money that the defaulting participant is entitled to receive under Indiana law.

(3) For a special taxing district, upon certification by the state comptroller after a sixty (60) day written notice to the special taxing district, the auditor of each county containing land within the special taxing district shall withhold collected tax money for the special taxing district and remit the withheld tax money to the state comptroller.  The state comptroller shall make a payment to the flood control fund in the name of the special taxing district.  Upon elimination of the delinquency payment, the state comptroller shall certify the fact to the auditors of the counties involved and any additional withheld tax money shall be released to the special taxing district.