208When does a liability arise?

#### 208 When does a liability arise? 208 When does a liability arise? > > (1) A mortgage becomes liable to duty on the date of its first execution. > > > (2) A mortgage becomes liable to additional duty on the making of an advance or further advance if, as a result of that advance or further advance, the amount secured by the mortgage exceeds the amount secured by the mortgage at the time a liability to duty last arose under this Act. > > > > Note. > > > > Section 219 exempts some further advances from duty. > > > (3) An instrument of security that does not affect property in New South Wales at the date of first execution but that affects land in New South Wales at any time within 12 months after that date becomes liable to duty as a mortgage on the date on which it first affects the land, unless it is exempt from duty. > > > (3A) An instrument of security that does not affect property in New South Wales at the date of first execution but that, at any time after execution, affects relevant property in New South Wales identified in the instrument or identified under an arrangement in place when the instrument was first executed, becomes liable to duty on the date it first affects that property, unless it is exempt from duty. > > > (4) An instrument that, on the deposit of documents of title to property in New South Wales or instruments creating a charge on property in New South Wales, becomes a mortgage or evidences the terms of a mortgage becomes liable to duty as a mortgage on the deposit of the documents or instruments. > > > (5) A reference in subsection (3) to land does not include a reference to an interest in land that is held by way of security. > > > (6) For the purposes of this section, relevant property means any property, excluding land and the following kinds of property— > > > > > (a) a marketable security that is quoted on the Australian Securities Exchange, > > > > > (b) an interest in a marketable security referred to in paragraph (a), or an interest in a marketable security if the interest is quoted on the Australian Securities Exchange, > > > > > (c) an interest in a unit trust scheme, being a unit trust scheme in respect of which units in the scheme have been issued to the public and 50 or more persons are beneficially entitled to units in the scheme, > > > > > (d) property the Chief Commissioner is satisfied is of a similar nature to property referred to in paragraph (a), (b) or (c). > > **s 208:** Am 1998 No 44, Sch 1 \[40\]; 1998 No 104, Sch 2 \[28\]; 2002 No 108, Sch 1 \[17\] \[18\]; 2003 No 80, Sch 1 \[19\]; 2006 No 49, Sch 1 \[26\] \[27\]; 2009 No 51, Sch 1.3 \[4\] \[5\]; 2012 No 76, Sch 1 \[3\]. > > **s 208A:** Ins 2023 No 18, Sch 1\[11\].