Section 966. Surrender of conditional tax receipts

1. Upon the surrender of
  the  conditional  tax receipt evidencing the discharge of the obligation
  created by the loan contract in connection with which it was issued, the
  municipal corporation shall replace it with a receipted tax  bill.  Such
  receipted  tax  bill  shall bear the date of the conditional tax receipt
  and no interest or penalty shall be charged  to  the  taxpayer  for  the
  period  between  the date of the issuance of the conditional tax receipt
  and the date of its surrender. All penalties and interest imposed by the
  municipal corporation for tax default shall be added  to  the  tax  lien
  until  the  discharge  of the obligation created by the loan contract in
  connection with which the conditional tax receipt was issued,  and  such
  penalties  and  interest shall be cancelled and be deemed satisfied upon
  the discharge of such obligation provided such obligation is  discharged
  prior  to  the  disposition  of the tax lien as provided in section nine
  hundred sixty-eight of this chapter.
    2. If subsequent to the  issuance  of  the  conditional  tax  receipt,
  payment  of  the  taxes  is made by any person directly to the municipal
  corporation in order to obtain  a  receipted  tax  bill,  the  municipal
  corporation  shall,  upon  surrender of the conditional tax receipt, pay
  the loan corporation the balance due to it on the loan contract.