§ 259 — Trust mortgages

§ 259. Trust mortgages. In the case of mortgages made by corporations\nin trust to secure payment of bonds or obligations issued or to be\nissued thereafter, if the total amount of principal indebtedness which\nunder any contingency may be advanced or accrued or which may become\nsecured by any such mortgage which is subject to this article has not\nbeen advanced or accrue thereon or become secured thereby before such\nmortgage is recorded, it may contain at the end thereof a statement of\nthe amount which at the time of the execution and delivery thereof has\nbeen advanced or accrued thereon, or which is then secured by such\nmortgage; thereupon the tax payable on the recording of the mortgage\nshall be computed on the basis of the amount so stated to have been so\nadvanced or accrued thereon or which is stated to be secured thereby.\nSuch statement shall thereafter at all times be binding upon and\nconclusive against the mortgagee, the holders of any bonds or\nobligations secured by such mortgage and all persons claiming through\nthe mortgagee any interest in the mortgage or in the mortgaged premises.\nWhenever a further amount is to be advanced under the original mortgage,\nor shall accrue thereon or become secured thereby, the corporation\nmaking such mortgage shall pay the tax on such amount at or before the\ntime when such amount is to be advanced, accrues or becomes secured and\nshall, at the time of paying such tax, file in the office of the\nrecording officer where such mortgage has been or is first recorded and\nwith the tax commission a statement, verified by the secretary,\ntreasurer or other proper officer, of said corporation of the amount of\nprincipal indebtedness to be so advanced, accruing or becoming secured,\nand the certification of any bond or bonds by the trust mortgagee shall\nbe deemed an advance under this article. Such additional tax shall be\npaid to the recording officer where such mortgage has been or is first\nrecorded and a receipt therefor shall be endorsed upon the mortgage and\npayment therefor shall be noted in the margin of the record of such\nmortgage and if requested a duplicate receipt for such payment shall\nalso be given to the party paying such tax and the note of such payment\nor additional payment or such receipt shall have the same force and\neffect as the record of receipt of the tax which under this article is\npayable at or before the recording of the mortgage. If such additional\ntax is not paid as required by this section, the trust mortgagee shall\nnot certify any bond or other obligation issued on account thereof. The\ncorporation making such mortgage or the owner of the property which\nsecures the mortgage debt shall annually within thirty days after July\nfirst, and until it shall appear by such statement that the maximum\namount of principal indebtedness secured by such mortgage has been\nadvanced, has accrued or become secured and the tax thereon paid, file\nin the office of the tax commission and the recording officer where such\nmortgage has been or is first recorded a statement, verified by the\nsecretary, treasurer or other proper officer of said corporation,\nshowing:\n 1. The name of the mortgagor and the mortgagee;\n 2. The date of the mortgage and the county where first recorded;\n 3. The maximum amount of principal debt or obligation which under any\ncontingency may be secured by such mortgage;\n 4. The amount advanced on such mortgage during the year ending June\nthirtieth preceding, with the date and amount of each advancement;\n 5. In the case of a mortgage recorded prior to July first, nineteen\nhundred and six, the first annual statement filed under this section as\nhereby amended, shall state the total amount advanced prior to July\nfirst, nineteen hundred and six, and the date and the amount of each\nsubsequent advancement to the end of the period covered by the\nstatement.\n A failure to file any statement required by this section within the\nspecified time shall subject the corporation or other person required to\nfile such statement to a penalty of not less than one dollar nor more\nthan one hundred dollars for each one thousand dollars of the maximum\namount of principal indebtedness which is or under any contingency may\nbecome secured by the mortgage, which penalty in the aggregate shall not\nexceed the sum of five thousand dollars, recoverable by the\nattorney-general in an action brought in the name of the people of the\nstate of New York.\n