(a) A bank depository that refuses to cash upon presentation by the payee within thirty (30) days of issuance a state warrant of five hundred dollars ($500) or less drawn upon the State Treasury or a bank check of five hundred dollars ($500) or less issued by a state agency shall:
(1) Be discontinued immediately as a bank depository; and
(2) For a period of time determined by the State Board of Finance, be ineligible for reinstatement as a bank depository.
(b) This section does not prevent a bank depository from:
(1) Taking a reasonable time to make proper identification of the persons and signatures of payees named in warrants or checks; or
(2) Seeking indemnification for losses from cashing warrants or checks for persons other than the payees named in the warrants or checks.