N.Y. Tax Law § 264: Tax on prior advance mortgages

§ 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.