§ 99. Withholding of state assistance upon default in payment of bonds held by the state. When any municipality shall be in default for a period of more than six months on account of principal of its bonds or on account of interest on such bonds, or on account of both such principal and interest, and such bonds shall have been owned for not less than two years by the state or by the state comptroller in trust, or for the benefit of the New York state employees' retirement system or of any fund of the state the allotment, apportionment and payment of state assistance pursuant to the provisions of article four-A of this chapter or of section one hundred twelve of the highway law to any such municipality shall be withheld by the state comptroller in the following manner. At the time of remittance of any installment or quarterly payment of such state assistance the comptroller shall withhold payment of installments or quarterly payments of such state assistance to such municipality until the indebtedness due from such municipality to the state or to the state comptroller as trustee or for the benefit of the New York state employees' retirement system or of any fund of the state shall be paid in full or until the installments or quarterly payments of such state assistance or portions thereof so withheld shall equal the amount so due from the municipality.