sec.264Limit on security provided by stamped and collateral mortgages

### sec.264 Limit on security provided by stamped and collateral mortgages A stamped or collateral mortgage that was, but is no longer, part of the same mortgage package and no longer secures the same amount secured by the package is not security for another advance unless mortgage duty for the amount of the other advance is paid. A has property in 5 States, each valued at $150,000. A borrows $100,000 secured by a mortgage package comprising 5 mortgages. The mortgages secure the full $100,000 and are stamped under this Act and the corresponding Acts of the other States on the basis that the dutiable proportion for each mortgage is $20,000. Under a restructure of the loans, the Queensland mortgage no longer secures the $100,000 which remains secured by the other mortgages on which duty has been paid in the other States. Under this subsection, if A takes out a new loan, the Queensland mortgage is not security for the new loan unless mortgage duty imposed on it is paid. The fact that the stamped or collateral mortgage is no longer part of the mortgage package does not affect the amounts for which the remaining mortgages in the mortgage package provide security. (sec.264-ssec.1) A stamped or collateral mortgage that was, but is no longer, part of the same mortgage package and no longer secures the same amount secured by the package is not security for another advance unless mortgage duty for the amount of the other advance is paid. A has property in 5 States, each valued at $150,000. A borrows $100,000 secured by a mortgage package comprising 5 mortgages. The mortgages secure the full $100,000 and are stamped under this Act and the corresponding Acts of the other States on the basis that the dutiable proportion for each mortgage is $20,000. Under a restructure of the loans, the Queensland mortgage no longer secures the $100,000 which remains secured by the other mortgages on which duty has been paid in the other States. Under this subsection, if A takes out a new loan, the Queensland mortgage is not security for the new loan unless mortgage duty imposed on it is paid. (sec.264-ssec.2) The fact that the stamped or collateral mortgage is no longer part of the mortgage package does not affect the amounts for which the remaining mortgages in the mortgage package provide security.