(a) The Lauderdale County Commission shall reimburse the office of judge of probate, revenue commissioner, and license commissioner from the general fund in the amount of any monetary loss, not to exceed a total of two thousand five hundred dollars ($2,500) per annum, arising or caused without the personal knowledge of the officer, including loss arising from acceptance of worthless or forged checks, drafts, money orders, or other written orders for money or its equivalent.

(b) It shall be the duty of the judge of probate, revenue commissioner, and license commissioner to insure that the employees of the respective offices exercise due care in performing their required duties and make a diligent effort to correct the error, mistake, or omission. The respective officers shall make a good faith effort to collect the amount subject to potential loss immediately upon becoming aware of the potential loss.

(c) This section shall not apply to any deliberate misuse or misappropriation of funds by the respective official or by any clerk or employee of his or her office.

(d) In cases where worthless or forged checks, drafts, money orders, or other written orders for money or its equivalent given for a license to the license commissioner is found to be non-collectible for any reason, the county license commissioner shall make a reasonable attempt to retrieve the license in question. In the event that the license cannot be retrieved, the license commissioner shall so state and that statement shall constitute authorization to void any license in question. Once the license has been voided, the license commissioner shall receive credit for the cost of the license, taxes, and all other fees from the appropriate agencies. The appropriate state office shall mark the records pertaining to the license void and, upon inquiry by law enforcement agencies, shall notify the agencies that the party in question is operating under a void license. All violations shall be prosecuted in accordance with current law.