(a) Agreement.--Council may agree with the owner of the real estate to accept a sum less than the whole of the amount of a municipal claim due, in compromise or reduction of the amount of the claim and the interest charges, expenses and fees added to and due on the claim, if:
(1) the city had entered the claim in the office of the prothonotary as a lien against real estate; and
(2) the claim has existed for 10 years or more.
(b) Satisfaction of lien.--Upon receipt of the compromise amount as agreed upon:
(1) The city shall cause the lien to be properly satisfied on the record, which shall be as effective as if the whole amount of the claim, interest, charges, expenses and fees had been paid.
(2) The claim shall no longer be a lien against the real estate or a claim against the owner of the real estate.
(c) Applicability.--The provisions of this section permitting compromise of municipal claims shall not apply to or in any manner affect any claims, the assessments for which:
(1) Are:
(i) the sole basis of improvement bonds issued by any political subdivision; and
(ii) the security for the payment of the bonds.
(2) Have been assigned by any political subdivision to any contractor in payment of the amount due the contractor under terms of the contract for the improvement for which the assessments were levied.
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