New South Wales Consolidated Acts
[Search this Act]
DUTIES ACT 1997 - SECT 227A
Transfer of mortgages
(1) If a mortgage is transferred (whether or not at the request or direction
of any party) to--
(a) a person who, either in connection with the transfer or
at a later time, makes an advance or further advance under or secured by the
(b) a person who is a party to arrangements (referred to in
section 215) relating to such an advance or further advance, the transferred
mortgage is taken, for the purpose of determining its liability to duty under
this Act, to be a new mortgage on which no duty has been paid and is liable to
duty in respect of the advance or further advance accordingly.
(2) The date
of first execution of the transferred mortgage is taken to be--
(a) in the
case of a mortgage where the advance or further advance was made in connection
with the transfer--the date of first execution of the transfer, and
the case of a mortgage where the advance or further advance was made at a
later time--the date of the first such advance or further advance.
(3) If an
insufficient amount of duty has been paid on a mortgage to which this section
applies before it is taken by this section to be a new mortgage, the Chief
Commissioner is not prevented from recovering at any time the amount of duty
with which, in the Chief Commissioner's opinion, the mortgage was properly
chargeable from the mortgagor or person bound.
(4) This section does not
apply to the following--
(a) a mortgage referred to in section 220 (3B),
a transfer of a mortgage by a corporation to another corporation if the Chief
Commissioner is satisfied that, had the transfer been a dutiable transaction,
it would not be chargeable with duty under section 273B (relating to corporate
reconstructions and consolidations),
(c) a transfer of a mortgage in
connection with, or in preparation for creating, issuing, marketing or
securing, a mortgage-backed security,
(d) a transfer of a mortgage from a
person who holds the mortgage as trustee for another person to a new trustee
appointed in substitution for the former trustee.
(5) This Chapter applies to
a mortgage referred to in subsection (1) in the same way as it applies to any
other mortgage, except as provided by subsection (6).
(6) For the purposes of
section 210, a transferred mortgage is not considered to have been duly
stamped in respect of any duty paid before the transfer on advances made
before the transfer.
AustLII: Copyright Policy