158Contingent liabilities

158 Contingent liabilities S. 158(1) amended by No. 46/2001 s. 14(4)(a). (1) A mortgage used or capable of being used, whether directly or indirectly, to recover the whole or any part of an amount contingently payable in connection with an advance— (a) by a guarantor or indemnifying party under a guarantee or indemnity; or (b) by another party under another instrument of a different kind— is chargeable with duty as if the whole or part of the amount of the contingent liability secured by the mortgage were a separate advance secured by the mortgage. (2) A reference in subsection (1) to a contingent liability is a reference to a contingent liability limited to the amount of any advance by a party referred to in subsection (1) and does not include a reference to any other kind of contingent liability. (3) This section— (a) does not apply if the Commissioner is satisfied that there is no connection between the mortgage and any advance by any party to the arrangements; (b) does not require duty to be paid more than once in respect of an advance.