Upon submission of satisfactory proof that the applicant is entitled to payment under this chapter, the adjutant general shall compute the amount of payment due the applicant, make a record thereof, and forward a voucher for the payment to the office of management and budget, which shall cause the warrant-check to be issued for the amount of the claim. Payment must be made from funds appropriated by the legislative assembly. If the veteran or the applicant for payment under this chapter is indebted to the veterans’ aid fund of the state of North Dakota, the adjutant general shall determine the amount of the indebtedness and certify the determination to the office of management and budget together with the record of payment due. Within the limits of the payment due, the amount of the indebtedness must be paid to the veterans’ aid fund and the applicant must be paid any remainder to which the veteran is entitled.