Section 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.