The state treasurer shall adjust the amounts due claimants under this act, and shall draw a warrant upon the state treasury for the amount due in favor of the person entitled to the amount within 3 months after application is made by that person. The balance of the taxes previously assessed upon the lands granted to this state and lying within the counties of Ottawa and Muskegon, upon the route extending from Grand Haven to Owosso and then to Flint, as described in this act and returned by the county treasurers of the counties of Muskegon and Ottawa to the state treasurer as delinquent and unpaid, and all interest and charges since accrued, are hereby canceled, and the state treasurer is hereby directed to credit the counties of Muskegon and Ottawa respectively with the amount of those taxes in all cases in which the tax has been previously charged back to those counties, with all interest and charges accrued upon the amounts charged back. However, the total amount of the credit shall not exceed the total amount the county may now be indebted to the state, and the counties of Muskegon and Ottawa shall credit up to the several townships in their respective counties all of the tax which has been charged back to the townships, or the proportion of the tax the county is credited with by the state.