DUTIES ACT 2001 - SECT 264
Limit on security provided by stamped and collateral mortgages
DUTIES ACT 2001 - SECT 264
Limit on security provided by stamped and collateral mortgages
264 Limit on security provided by stamped and collateral mortgages
(1) A
stamped or collateral mortgage that was, but is no longer, part of the same
mortgage package and no longer secures the same amount secured by the package
is not security for another advance unless mortgage duty for the amount of the
other advance is paid.
Example for subsection (1)—
A has property in 5
States, each valued at $150,000. A borrows $100,000 secured by a mortgage
package comprising 5 mortgages. The mortgages secure the full $100,000 and are
stamped under this Act and the corresponding Acts of the other States on the
basis that the dutiable proportion for each mortgage is $20,000.
Under a restructure of the loans, the Queensland mortgage no longer secures
the $100,000 which remains secured by the other mortgages on which duty has
been paid in the other States.
Under this subsection, if A takes out a new loan, the Queensland mortgage is
not security for the new loan unless mortgage duty imposed on it is paid.
(2) The fact that the stamped or collateral mortgage is no longer part of the
mortgage package does not affect the amounts for which the remaining mortgages
in the mortgage package provide security.
