sec.262Collateral mortgage

### sec.262 Collateral mortgage Mortgage duty is not imposed on the part of the amount secured by a collateral mortgage that is secured by— a mortgage or security instrument that is properly stamped under this Act or a corresponding Act; or a mortgage package that has been properly stamped under section 261 or a corresponding Act. However, a mortgage (a secondary mortgage ) that secures all or part of the same amount as another mortgage, security instrument or mortgage package that affects property located in Victoria or Tasmania and has been properly stamped under this Act or a corresponding Act is taken not to be a collateral mortgage if the commissioner is satisfied there was an arrangement to avoid the imposition of mortgage duty on the secondary mortgage. A collateral mortgage that no longer secures an amount secured by a mortgage, instrument or mortgage package mentioned in subsection (1) is not security for another advance unless mortgage duty for the amount of the other advance is paid. s 262 amd 2004 No. 18 s 10 ; 2006 No. 44 s 77 (sec.262-ssec.1) Mortgage duty is not imposed on the part of the amount secured by a collateral mortgage that is secured by— a mortgage or security instrument that is properly stamped under this Act or a corresponding Act; or a mortgage package that has been properly stamped under section 261 or a corresponding Act. (sec.262-ssec.1A) However, a mortgage (a secondary mortgage ) that secures all or part of the same amount as another mortgage, security instrument or mortgage package that affects property located in Victoria or Tasmania and has been properly stamped under this Act or a corresponding Act is taken not to be a collateral mortgage if the commissioner is satisfied there was an arrangement to avoid the imposition of mortgage duty on the secondary mortgage. (sec.262-ssec.2) A collateral mortgage that no longer secures an amount secured by a mortgage, instrument or mortgage package mentioned in subsection (1) is not security for another advance unless mortgage duty for the amount of the other advance is paid. - (a) a mortgage or security instrument that is properly stamped under this Act or a corresponding Act; or - (b) a mortgage package that has been properly stamped under section 261 or a corresponding Act.