This text of New York § 256 (Mortgages for indefinite amounts or for contract obligations) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
§ 256. Mortgages for indefinite amounts or for contract obligations.\nIf the principal indebtedness secured or which by any contingency may be\nsecured by a mortgage is not determinable from the terms of the\nmortgage, or if a mortgage is given to secure the performance by the\nmortgagor or any other person of a contract obligation other than the\npayment of a specific sum of money and the maximum amount secured or\nwhich by any contingency may be secured by the mortgage is not expressed\ntherein, such mortgage shall be taxable under section two hundred and\nfifty-three of this chapter upon the value of the property covered by\nthe mortgage, which shall be determined by the recording officer to whom\nsuch mortgage is presented for record, unless at the time of presenting\nsuch mortgage f
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§ 256. Mortgages for indefinite amounts or for contract obligations.\nIf the principal indebtedness secured or which by any contingency may be\nsecured by a mortgage is not determinable from the terms of the\nmortgage, or if a mortgage is given to secure the performance by the\nmortgagor or any other person of a contract obligation other than the\npayment of a specific sum of money and the maximum amount secured or\nwhich by any contingency may be secured by the mortgage is not expressed\ntherein, such mortgage shall be taxable under section two hundred and\nfifty-three of this chapter upon the value of the property covered by\nthe mortgage, which shall be determined by the recording officer to whom\nsuch mortgage is presented for record, unless at the time of presenting\nsuch mortgage for record the owner thereof shall file with the recording\nofficer a sworn statement of the maximum amount secured or which under\nany contingency may be secured by the mortgage. If such maximum amount\nis expressed in the mortgage or in a sworn statement filed as required\nby this section, such amount shall be the basis for assessing the tax\nimposed by this article. A statement filed by the owner of a mortgage\npursuant to this section shall thereafter at all times be binding upon\nand conclusive against such owner, the holders of any bonds or\nobligations secured by such mortgage and all persons claiming through\nthe mortgagee any interest in the mortgage or the mortgaged premises. If\nthe maximum amount secured or which by any contingency may be secured by\nthe mortgage is not expressed in the mortgage or in a sworn statement as\nauthorized by this section, the recording officer at the time such\nmortgage is offered for record may require the mortgagor or mortgagee to\nfurnish him with proofs as to such facts as he deems necessary for the\npurpose of computing the value of the property covered by the mortgage\nand such proofs shall include an affidavit of appraisal of the value of\nthe property made by at least two competent, disinterested persons and\nshall be preserved in his office. His determination and copies of the\nproofs as to the basis for computing the tax on such mortgage shall be\nforwarded to and subject to review by the state tax commission. Such\nmortgage shall not be recorded until the statement is filed or the\nproofs are furnished as required by this article.\n Whenever any such mortgage shall have been recorded without the\npayment of the tax as herein provided, and it shall thereafter be\ndetermined by the tax commission, after an opportunity to be heard by\nthe parties in interest, that the failure to pay such tax was due to an\nhonest misconception on the part of the recording officer or the owner\nof the instrument as to the nature of such instrument and its taxability\nunder this article, the tax commission may make an order permitting the\nrecording officer to file the aforesaid statement nunc pro tunc as of\nthe date of the recording of the mortgage. The payment of the tax may be\nmade on the basis of such statement with interest thereon at the rate of\nsix per centum per annum as provided in section two hundred and\nfifty-eight of this article.\n