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 646 - Trust Mortgages
Section 646.3 - Advances under a trust mortgage

(a) Whenever a further amount is to be advanced or to become secured by a trust mortgage, the applicable mortgage recording taxes as described in Part 642 of this Title are imposed based on such amount.

(b) The certification of any bond or bonds by the trust mortgagee are deemed an advance under article 11 of the Tax Law.

(c) The mortgage recording taxes imposed on the further amounts to be advanced or to become secured by a trust mortgage must be paid at or before the time the advance is made.

(d) The mortgagor must, at the time of paying the appropriate mortgage recording taxes on a further advance, file in the office of the recording officer of the county where the mortgage is first recorded and with the commissioner, a verified statement of the amount to be so advanced or to become secured. The verified statement must be made by the secretary, treasurer or other proper officer of the mortgagor.

(e) The recording officer to whom the taxes are paid shall endorse the receipt of such tax payment upon the mortgage and note the payment on the margin of the record in the book where the mortgage is recorded or note the payment in some other manner which would provide a public record of such payment. Upon request the recording officer must issue a duplicate receipt for the tax payment to the party paying the tax.

(f) If the appropriate taxes are not duly paid on the further amounts to be advanced or to become secured by a trust mortgage, the trust mortgagee shall not certify any bonds or obligations evidencing such further amounts under the mortgage.