226Payment on mortgages associated with debenture issues

226 Payment on mortgages associated with debenture issues

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 |