(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
mortgage, or
(b) a person who is a party to arrangements (referred to in
section 215) relating to such an advance or further advance,
the transferredmortgage 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.
(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
(b) in
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--
(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 transferredmortgage is not considered to have been duly
stamped in respect of any duty paid before the transfer on advances made
before the transfer.