New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter IV - Sales And Use And Other Miscellaneous Taxes
Subchapter D - Mortgage Recording Taxes
Part 645 - Supplemental Mortgages
Section 645.1 - Supplemental mortgages
Current through Register Vol. 46, No. 12, March 20, 2024
Tax Law, § 255
(a) A supplemental mortgage is an additional instrument or mortgage which is recorded subsequent to the recording and prior to the discharge or satisfaction of a prior primary mortgage on which all taxes, if any, accrued under article 11 of the Tax Law have been paid, the terms of which make reference to the prior recorded primary mortgage, and which is given and recorded:
(b) Examples of supplemental mortgages.
Example 1:
The proper mortgage recording taxes were paid upon the recording of a mortgage containing an error in the description of the real property covered by the mortgage. An instrument recorded for the purpose of correcting the description constitutes a supplemental mortgage.
Example 2:
The proper mortgage recording taxes were paid upon the recording of an agreement to give a mortgage, and later the mortgage is given and recorded. The subsequent mortgage is a supplemental mortgage.
Example 3:
The proper mortgage recording taxes were paid upon the recording of a taxable executory contract, which provides for the subsequent giving of a purchase money mortgage to the contract vendor. The mortgage given in accordance with the terms of the contract constitutes a supplemental mortgage.
Example 4:
The proper mortgage recording taxes were paid upon the recording of a building and loan mortgage. The building and loan mortgage provided that the mortgage, upon completion of the construction project, shall be divided into two separate mortgages to be executed between the parties to the original building and loan mortgage. The building and loan mortgage also provides that it will be satisfied when the two separate mortgages are given. The latter two separate mortgages would constitute supplemental mortgages.
Example 5:
The proper mortgage recording taxes were paid upon the recording of a mortgage covering parcel A. An instrument is later recorded for the purpose of spreading the lien of the mortgage to include parcel B. Such instrument would constitute a supplemental mortgage.
Example 6:
In 1985, a mortgage is given to Bank X by Mr. Smith. The note secured by the mortgage provides for an adjustable rate of interest. In 1991 the terms of the note are amended to provide a fixed rate of interest and the mortgage is modified accordingly. Such agreement is a supplemental mortgage.