§ 1140. Parcels affected by bankruptcy proceedings. 1. Stay of
enforcement proceeding. The commencement of a bankruptcy proceeding
pursuant to the bankruptcy code of 1978 (title eleven of the United
States code) shall stay a proceeding to enforce a delinquent tax lien,
to the extent required by the bankruptcy code.

2. Notice to enforcing officer. Whenever an officer or employee of a
municipal corporation receives an official notification of the
commencement of a bankruptcy proceeding affecting real property therein,
such officer or employee shall forthwith forward the same, or a copy
thereof, to the enforcing officer of the tax district which enforces
taxes on behalf of such municipal corporation.

3. Partial payments. Notwithstanding any law otherwise precluding the
acceptance of partial payments of taxes, a partial payment may be
accepted in relation to property which is the subject of a bankruptcy
proceeding, provided that the payment is accompanied by satisfactory
proof of the bankruptcy proceeding, such as a copy of an order or plan
issued thereunder.

4. Cancellation and chargebacks. A tax district shall direct the
cancellation of a delinquent tax lien to the extent such lien has been
rendered permanently unenforceable as the result of a bankruptcy
proceeding. The tax district shall not be required to credit or
otherwise guarantee to any municipal corporation a delinquent tax
against a parcel to the extent the lien thereon has been cancelled
pursuant to this section. If such a credit or guarantee shall have been
given before the cancellation of the lien, the tax district shall be
entitled to charge back to each municipal corporation a proportionate
share of the cancelled lien.