N.Y. Real Property Tax Law § 1140: Parcels affected by bankruptcy proceedings

§ 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.