58QSubsequent mortgages

#### 58Q Subsequent mortgages (1) Subject to subsection (2), where a subsequent mortgage connected with the Territory contains a covenant that: (a) confers upon the mortgagee a right, whether absolute or contingent, to pay to a prior mortgagee the amount owing under a prior mortgage; and (b) provides that any payment so made will be directly secured by the subsequent mortgage; the amount of duty payable on the subsequent mortgage shall be determined without regard to the provisions of the covenant. (2) Where a payment is made under a covenant referred to in subsection (1), the subsequent mortgage: (a) is liable to duty equal to the duty (if any) that would be payable on the subsequent mortgage if it were a loan security for the repayment of the amount of the payment; and (b) within 30 days after the payment is made, shall be lodged by the borrower with the Commissioner for assessment. (3) This section does not apply to a payment made on or after the termination day.