Pennsylvania Act 1941-339 — TAX LIEN DISCHARGE UNDER BANKRUPTCY ACT

Act text

TAX LIEN DISCHARGE UNDER BANKRUPTCY ACT
                 Act of Aug. 11, 1941, P.L. 894, No. 339              Cl. 53
                                  AN ACT

     Authorizing political subdivisions to accept in full payment of
        municipal claims, taxes, penalties, interests and costs such
        amount as may be fixed for the discharge thereof in
        proceedings under the National Bankruptcy Act.

        Whereas, during the years of the economic depression many
     corporations and individuals became insolvent or unable to pay
     their debts as they matured and are now or may hereafter be in
     the process of reorganization or arrangement proceedings under
     the National Bankruptcy Act, and,
        Whereas, the National Bankruptcy Act has made provision for
     the fair and equitable administration and readjustment of the
     affairs of such corporations and individuals under the
     jurisdiction of the United States courts and with due
     consideration to the relative rights and priorities of claims
     and obligations of all classes, including municipal claims and
     taxes against such corporations or individuals,

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Definitions.--Hereafter in this act the following
     words shall be understood to have the meanings herein set forth,
     unless a contrary or different meaning be clearly indicated by
     the context:
        (a)  "Claims" shall mean municipal claims and liens, tax
     claims and liens and penalties, interest and costs due thereon.
        (b)  "Corporation" shall mean all bodies having any of the
     powers and privileges of private corporations not possessed by
     individuals or partnerships and shall include partnership
     associations organized under laws making the capital subscribed
     alone responsible for the debts of the associations, joint stock
     companies, unincorporated companies and associations and any
     business conducted by a trustee or trustees wherein beneficial
     interest or ownership is evidenced by certificate or other
     written instrument.
        Section 2.  Corporate Reorganizations.--Whenever, after a
     hearing duly held thereon, a plan of reorganization of any
     corporation has been or shall hereafter be found to be fair and
     equitable and feasible and be approved by the decree or order of
     any court of competent jurisdiction pursuant to the provisions
     of Chapter X of the Act of the Congress of the United States,
     approved the first day of July, one thousand eight hundred
     ninety-eight, entitled, "An Act to Establish a Uniform System of
     Bankruptcy Throughout the United States", and the amendments and
     supplements thereto, or of any similar Act of Congress, and
     which plan of reorganization fixes a sum to be paid for the
     discharge and satisfaction of all claims of any political
     subdivisions against such corporation or its property, which sum
     may be less than the total amount of such claims, but shall be
     determined by such court to be not less than the net amount
     which could be realized at a tax sale of the real property
     against which such taxes may be or might become a lien or by
     enforced collection against such corporation, then and in such
     event the tax levying body of any political subdivision shall
     have power to file its written acceptance of said plan of
     reorganization, accompanied by a copy of the ordinance or
     resolution authorizing the acceptance of such plan, in the court
     having jurisdiction of the proceedings for the reorganization of
     such corporation, and to accept in full satisfaction and
     discharge of such claims as may constitute claims against such
     corporation, and in full satisfaction and discharge of the liens
     of any such claims as may constitute liens against the property
     of such corporation, the amount so fixed by the court in said
     plan of reorganization. Such satisfaction and discharge shall
     not constitute a satisfaction and discharge of any liability of
     any person other than such corporation with respect to such
     claims. Upon the payment over to the political subdivision of
     the amount so fixed the tax levying body of such political
     subdivision shall cause satisfaction to be entered on the proper
     record for such claims.
        Section 3.  Arrangement Proceedings by Persons Other Than
     Corporations.--Whenever any arrangement respecting a person
     other than a corporation has been or shall hereafter be proposed
     pursuant to the provisions of Chapter XII of the Act of the
     Congress of the United States, approved the first day of July,
     one thousand eight hundred ninety-eight, entitled, "An Act to
     Establish a Uniform System of Bankruptcy Throughout the United
     States", and the amendments and supplements thereto, or of any
     similar Act of Congress, which arrangement fixes a sum to be
     paid for the discharge and satisfaction of all claims due by
     such person to any political subdivision, which sum may be less
     than the total amount of such claims, but shall be not less than
     the net amount which could be realized at a tax sale of the real
     property against which such taxes may be or might become a lien
     or by enforced collection against such person, then and in such
     event the tax levying body of any political subdivision shall
     have power to file its written acceptance of said arrangement,
     accompanied by a copy of the ordinance or resolution authorizing
     the acceptance of such arrangement in the court having
     jurisdiction of the proceeding for such arrangement, and, upon
     confirmation by such court of such arrangement, shall accept in
     full satisfaction for such claims the amount so fixed in said
     arrangement. Upon payment over to the political subdivision of
     the amount so fixed the tax levying body of such political
     subdivision shall cause satisfaction to be entered on the proper
     record for such claims.
        Section 4.  Effective Date.--This act shall become effective
     immediately upon final enactment.