Corporate Reorganizations

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.