(a) the
transaction is a transfer of dutiable property by way of security; and
(b)
the property is not land.
(2) Subsection (3) applies if—
(a) after the
transfer by way of security, the transferee, or the transferee’s assignee,
acquires ownership of the dutiable property free from any interest of the
transferor, or transferor’s assignee; and
(b) the transferee, or the
transferee’s assignee, were to newly acquire the dutiable property at the
time of the acquisition mentioned in paragraph (a) , the acquisition would be
a dutiable transaction.
(3) The acquisition of the ownership of the
dutiable property by the transferee is taken to be a dutiable transaction and
transfer duty imposed on the transaction must be reduced by the amount of
mortgage duty, if any, paid on the transfer.
