Duties Act 1997 No 123
Current version for 1 December 2014 to date (accessed 23 December 2014 at 12:35)
Chapter 7Part 5Section 226

226   Payment on mortgages associated with debenture issues

(1)  This section applies if:
(a)  a corporation is or will be under a liability to repay money received or to be received by it in respect of its debentures, and
(b)  the repayment is secured by a mortgage first executed before the cut-off date, and
(c)  the corporation is a party to an instrument of trust relating to the debentures.
(2)  If the corporation and the trustee for the debenture holders give a written undertaking in the approved form to the Chief Commissioner:
(a)  a mortgage first executed by the corporation before the cut-off date and solely securing the repayment of money received or to be received by the corporation in respect of its debentures is not liable to mortgage duty in respect of advances made before the debenture concession closure date arising from debentures subscribed for before the cut-off date, and
(b)  a mortgage, not executed by the corporation, and first executed before the cut-off date, solely securing the repayment of such money is liable to duty of $10 in respect of advances made before the debenture concession closure date arising from debentures subscribed for before the cut-off date, and
(c)  a mortgage, whether executed by the corporation or by another party, and first executed before the cut-off date, and securing in part the repayment of such money is not liable to mortgage duty in respect of advances made before the debenture concession closure date arising from debentures subscribed for before the cut-off date.
Note. The State Revenue Legislation Amendment Act 2003 terminated the concession provided for by this section in respect of mortgages executed, or debentures subscribed for, on or after the cut-off date.
(3)  The undertaking binds the corporation and the trustee to lodge with the Chief Commissioner, in July each year, a statutory declaration setting out, in the following categories, the total amount subscribed for in New South Wales before the cut-off date in respect of the corporation’s debentures during the year ending on the previous 30 June (but not including amounts repayable at call or in less than 30 days) and binds the corporation to pay duty in the following amounts:

Money repayable at or after the expiration of not less than 30 days and not more than 3 months

$2 for every $10,000, or part

Money repayable at or after the expiration of not less than 3 months and not more than 6 months

$2 for every $1,000, or part

Other money (except money repayable at call or in less than 30 days)

$4 for every $1,000, or part

Money repayable at call after a specified period is taken to be money repayable at the expiration of that period.

(3A)  The obligation to lodge a statutory declaration in July each year ceases after July 2003.
(3B)  Section 208 (2) applies in respect of a mortgage referred to in subsection (2), or a collateral mortgage that secures the same money as is secured by a mortgage referred to in subsection (2), if an advance or further advance is made on or after the debenture concession closure date, as if the reference to the amount secured by the mortgage at the time a liability to duty last arose were a reference to the total of:
(a)  the disclosed debenture amount, and
(b)  any advances or further advances made on or after the cut-off date in respect of which duty has been paid under this Chapter.
(3C)  (Repealed)
(3CA)  A mortgage executed before the cut-off date that is not liable to duty under subsection (2) and in respect of which no further advances have been made on or after the debenture concession closure date is taken to have been duly stamped.
(3D)  For the purposes of this section, the disclosed debenture amount is the total amount of debentures subscribed for in New South Wales before the cut-off date and disclosed to the Chief Commissioner in a statutory declaration referred to in subsection (3).
(4)  In this section, a reference to an amount subscribed for in respect of debentures includes a reference to an amount represented by debentures issued on the conversion or renewal of an existing holding of debentures or other marketable securities.
(4A)  To avoid any doubt, subsection (3B) extends to a mortgage executed on or after 1 January 1975 and before 1 January 1999.
(5)  In this section:

cut-off date means the date of commencement of Schedule 1 to the State Revenue Legislation Amendment Act 2003.

debenture concession closure date means the date on which the Bill for the State Revenue Legislation Further Amendment Act 2005 was introduced into the Legislative Assembly.

Top of page