When any school district now existing or hereafter created shall be dissolved, abolished or discontinued, either as a result of the reconstitution or reorganization of school districts under Article 1 of this chapter, or otherwise, and shall have outstanding bonds or other indebtedness, and such bonds or other indebtedness are not assumed by another school district under the provisions of Section 37-7-505, then all funds which may be on hand to the credit of the dissolved district at the time of the dissolution or abolition thereof shall be paid into the bond and interest sinking fund or into a special fund to be used for the payment of such outstanding bonds or other indebtedness. All property and other assets which shall belong to such dissolved district at the time of the dissolution or discontinuance thereof may be sold by the board of supervisors of the county in which the property or other assets are located, and the proceeds of such sale shall likewise be paid into the bond and sinking fund or other special fund for the payment of such bonds or other indebtedness. If, after paying such bonds or other indebtedness, any funds shall remain, the same shall become the property of the district to which the territory of the dissolved district is annexed, or if such territory be annexed to two (2) or more districts then such funds shall be divided among such districts in proportion to the number of children enrolled in the schools of the dissolved district at the time of the dissolution thereof who reside in the territory annexed to each district or in such other manner as may be agreed upon by the school boards of the districts involved. Said sales shall be conducted in the manner and following the procedure set up in Sections 37-7-451 through 37-7-457.