N.Y. Tax Law Section 259
Trust mortgages

In the case of mortgages made by corporations in trust to secure payment of bonds or obligations issued or to be issued thereafter, if the total amount of principal indebtedness which under any contingency may be advanced or accrued or which may become secured by any such mortgage which is subject to this article has not been advanced or accrue thereon or become secured thereby before such mortgage is recorded, it may contain at the end thereof a statement of the amount which at the time of the execution and delivery thereof has been advanced or accrued thereon, or which is then secured by such mortgage; thereupon the tax payable on the recording of the mortgage shall be computed on the basis of the amount so stated to have been so advanced or accrued thereon or which is stated to be secured thereby. Such statement shall thereafter at all times be binding upon and conclusive against the mortgagee, the holders of any bonds or obligations secured by such mortgage and all persons claiming through the mortgagee any interest in the mortgage or in the mortgaged premises. Whenever a further amount is to be advanced under the original mortgage, or shall accrue thereon or become secured thereby, the corporation making such mortgage shall pay the tax on such amount at or before the time when such amount is to be advanced, accrues or becomes secured and shall, at the time of paying such tax, file in the office of the recording officer where such mortgage has been or is first recorded and with the tax commission a statement, verified by the secretary, treasurer or other proper officer, of said corporation of the amount of principal indebtedness to be so advanced, accruing or becoming secured, and the certification of any bond or bonds by the trust mortgagee shall be deemed an advance under this article. Such additional tax shall be paid to the recording officer where such mortgage has been or is first recorded and a receipt therefor shall be endorsed upon the mortgage and payment therefor shall be noted in the margin of the record of such mortgage and if requested a duplicate receipt for such payment shall also be given to the party paying such tax and the note of such payment or additional payment or such receipt shall have the same force and effect as the record of receipt of the tax which under this article is payable at or before the recording of the mortgage. If such additional tax is not paid as required by this section, the trust mortgagee shall not certify any bond or other obligation issued on account thereof. The corporation making such mortgage or the owner of the property which secures the mortgage debt shall annually within thirty days after July first, and until it shall appear by such statement that the maximum amount of principal indebtedness secured by such mortgage has been advanced, has accrued or become secured and the tax thereon paid, file in the office of the tax commission and the recording officer where such mortgage has been or is first recorded a statement, verified by the secretary, treasurer or other proper officer of said corporation, showing:

1.

The name of the mortgagor and the mortgagee;

2.

The date of the mortgage and the county where first recorded;

3.

The maximum amount of principal debt or obligation which under any contingency may be secured by such mortgage;

4.

The amount advanced on such mortgage during the year ending June thirtieth preceding, with the date and amount of each advancement;

5.

In the case of a mortgage recorded prior to July first, nineteen hundred and six, the first annual statement filed under this section as hereby amended, shall state the total amount advanced prior to July first, nineteen hundred and six, and the date and the amount of each subsequent advancement to the end of the period covered by the statement. A failure to file any statement required by this section within the specified time shall subject the corporation or other person required to file such statement to a penalty of not less than one dollar nor more than one hundred dollars for each one thousand dollars of the maximum amount of principal indebtedness which is or under any contingency may become secured by the mortgage, which penalty in the aggregate shall not exceed the sum of five thousand dollars, recoverable by the attorney-general in an action brought in the name of the people of the state of New York.

Source: Section 259 — Trust mortgages, https://www.­nysenate.­gov/legislation/laws/TAX/259 (updated Sep. 22, 2014; accessed May 4, 2024).

250
Definitions 251
Procedure for review 252
Exemptions 252‑A
Other exemptions 253
Recording tax 253‑A
Recording tax by a city of one million or more 253‑B
Credit line mortgage 253‑C
Recording tax imposed by the county of Nassau 253‑D
Recording tax imposed by the city of Yonkers 253‑E
Recording tax imposed by the county of Broome 253‑F
Recording tax imposed by the county of Rockland 253‑G
Recording tax imposed by the county of Westchester 253‑H
Recording tax imposed by the county of Lewis 253‑I
Recording tax imposed by the county of Columbia 253‑J
Recording tax imposed by the county of Sullivan 253‑J*2
Recording tax imposed by the county of Hamilton 253‑J*3
Recording tax imposed by the county of Essex 253‑J*4
Recording tax imposed by the county of Schoharie 253‑K
Recording tax imposed by the county of Genesee 253‑L
Recording tax imposed by the county of Rensselaer 253‑M
Recording tax imposed by the county of Wayne 253‑N
Recording tax imposed by the county of Wyoming 253‑O
Recording tax imposed by the county of Chautauqua 253‑P
Recording tax imposed by the county of Albany 253‑R
Recording tax imposed by the county of Schenectady 253‑S
Recording tax imposed by the county of Steuben 253‑T
Recording tax imposed by the county of Yates 253‑U
Recording tax imposed by the county of Herkimer 253‑V
Recording tax imposed by the county of Cortland 253‑W
Recording tax imposed by the county of Warren 253‑X
Recording tax imposed by the county of Cattaraugus 253‑X*2
Recording tax imposed by the county of Greene 253‑Y
Recording tax imposed by the county of Madison 253‑Y*2
Recording tax imposed by the county of Livingston 253‑Y*3
Recording tax imposed by the county of Washington 254
Optional tax on prior mortgages 255
Supplemental mortgages 256
Mortgages for indefinite amounts or for contract obligations 257
Payment of taxes 257‑A
Refund of mortgage taxes after rescission of certain credit transactions 258
Effect of nonpayment of taxes 258‑A
Payment of tax on instruments not recorded 259
Trust mortgages 260
Determination and apportionment by the state tax commission 261
Payment over and distribution of taxes 262
Expenses of officers 263
Supervisory power of commissioner of taxation and finance and comptroller 264
Tax on prior advance mortgages 265
Tax a lien 266
Enforcement 267
Idem
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Accessed:
May 4, 2024

Last modified:
Sep. 22, 2014

§ 259’s source at nysenate​.gov

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