Queensland Consolidated Acts

DUTIES ACT 2001 - SECT 259

(1) This section applies to a mortgage securing or capable of securing, whether directly or indirectly, an amount contingently payable (the secured amount) in connection with an advance (the primary advance)—

(a) by a guarantor or indemnifying party under a guarantee or indemnity; or

(b) by another party under another type of instrument.

(2) Mortgage duty must be assessed on the secured amount as if it were a separate advance secured by the mortgage.

(3) For subsection (2), the contingent liability is limited to the amount of the primary advance.

(4) This section—

(a) does not apply if the commissioner is satisfied there is no connection between the mortgage and the primary advance; and

(b) does not require mortgage duty to be paid more than once for an advance.