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This entry was published on 2014-09-22
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SECTION 264
Tax on prior advance mortgages
Tax (TAX) CHAPTER 60, ARTICLE 11
§ 264. Tax on prior advance mortgages. Whenever any part of the
amount of the principal indebtedness which is or under any contingency
may be secured by a mortgage recorded prior to July first, nineteen
hundred and six, is advanced after July first, nineteen hundred and six,
the tax prescribed by section two hundred and fifty-three of this
article is hereby imposed on the amount of principal indebtedness so
advanced, which tax shall be payable at the same time and in the same
manner as taxes imposed by section two hundred and fifty-nine of this
article, and all the provisions of section two hundred and fifty-nine in
relation to the time and manner of paying such tax, the filing of
statements in relation to the time and amount of such advances, and
penalties for failure to file the same shall apply to advances made
under this section and the payment of a tax thereon, except that if the
mortgagor is not a corporation, such statements shall be filed by the
owner of the mortgage, who, for failure to do so, shall be subject to
the penalties prescribed by such section. In case said mortgage was
given to secure the payment of a series of bonds, the mortgagor may, at
the time of paying such tax, present to the recording officer, the bonds
representing the portion of the principal indebtedness secured by said
mortgage upon which the tax is to be paid, and also file with said
recording officer a statement verified by the mortgagor or an officer or
duly authorized agent or attorney of the mortgagor specifying that said
bonds, so presented, are the bonds representing that portion of the
principal indebtedness secured by said mortgage upon which the tax is to
be paid and that said bonds are secured by a mortgage recorded in said
office stating the date of said mortgage and the liber and page of the
record of the same. It shall be the duty of such recording officer to
indorse upon each of said bonds, so presented to him, a statement signed
by him to the effect that the tax imposed by this article on that
portion of the principal indebtedness secured by said mortgage
represented by said bonds has been paid, and said statement shall be
conclusive proof of such payment. Notwithstanding the exception
contained in section two hundred and fifty-four, the record owner of any
mortgage recorded prior to July first, nineteen hundred and six, other
than a corporate trust mortgage, may file in the office of the recording
officer where such mortgage is first recorded a statement in form and
substance as required by section two hundred and fifty-four of this
article, except that it shall specify and state the amount of all
advancements made thereon prior to said date, giving the date and amount
of each advancement and the amount of such prior advancements remaining
unpaid, and thereby elect that the same be taxed under this article; and
any mortgagor or mortgagee under a corporate trust mortgage given to
secure a series of bonds or the owner of any such bond or bonds secured
thereby may file in the office of the recording officer where such
mortgage is first recorded a statement in form and substance as required
by section two hundred and fifty-four of this article, except that it
shall specify the serial number, the date and amount of each bond and
otherwise sufficiently describe the same to identify it as being secured
by such mortgage, and thereby elect that such bond or bonds be taxed
under this article, and such bond or bonds shall be taxed upon the whole
amount thereof notwithstanding the provisions of section two hundred and
sixty of this article. A tax shall thereupon, in the case of mortgages
other than corporate trust mortgages, be computed, levied and collected
upon the amount of the principal debt or obligation represented by said
unpaid prior advancements at the time of filing such statement, or, in
the case of a corporate trust mortgage, upon the amount of the bond or
bonds specified in the statement filed, at the rate prescribed by
section two hundred and fifty-three of this article. Said bonds
representing prior advancements under corporate trust mortgages and
taxed as herein provided may be presented to the recording officer,
whose duty it is to collect said tax, for indorsement and he shall
thereupon indorse upon each of said bonds a statement, attested by his
signature, of the payment of the tax as provided in this section in
respect to bonds representing subsequent advancements, and the record
owner of any other mortgage taxed upon prior advancements as herein
provided may present said mortgage to the recording officer and
thereupon such officer shall note upon the same the filing of the
statement and the amount of the tax paid, attested by his signature. In
all such cases the recording officer shall note on the margin of the
record of such mortgage the filing of such statement and the amount of
the tax paid, and, in case of bonds secured by corporate trust
mortgages, the serial number of each such bond. The words "bond" and
"bonds" as used in this section shall be deemed to embrace all notes or
other evidences of indebtedness secured by mortgages taxable under this
section. In case of any mortgage taxable under this section, the
portion of the indebtedness secured thereby upon which the tax imposed
by this section is paid, and such portion only, shall be exempt from
taxation under the provisions of section two hundred and fifty-one of
this article. Whenever the tax imposed by section two hundred and
sixty-four of this article as said section existed prior to May
thirteenth, nineteen hundred and seven, has been paid with respect to
any mortgage, no additional tax shall accrue on such mortgage under this
section as hereby enacted and such mortgage and the debt or obligation
secured thereby, shall continue to be entitled to the exemptions and
immunities conferred by this article and all of the provisions of this
article shall remain applicable to such mortgage. All taxes imposed by
or which became due, payable or collectible on or before the thirtieth
day of June, nineteen hundred and six, pursuant to chapter seven hundred
and twenty-nine of the laws of nineteen hundred and five, and all taxes
which under section two hundred and fifty-eight of this chapter became
due and payable on the thirtieth day of July, nineteen hundred and six,
and all other taxes, if any, which were imposed by chapter seven hundred
and twenty-nine of the laws of nineteen hundred and five on any mortgage
recorded prior to the first day of July, nineteen hundred and six, in
respect to any period ending on or before the first day of July,
nineteen hundred and six, shall be imposed, become due, be payable and
collectible and shall be paid over and distributed in the same manner,
and with the same force and effect as if this article had not been
enacted; and for the purpose of collecting, paying over, distributing
and enforcing any such taxes, chapter seven hundred and twenty-nine of
the laws of nineteen hundred and five shall be deemed to be in force,
and the lien for such taxes shall attach and such taxes shall be levied
and collected as provided in chapter seven hundred and twenty-nine of
the laws of nineteen hundred and five, anything herein contained to the
contrary notwithstanding.