Tax Law, § 256
Example 1:
A mortgage is presented for recording which provides that it shall secure the repayment of a $3 million loan and also it shall stand as security for the repayment of further loans which shall be made by the mortgagee to the mortgagor. Such mortgage would be considered a mortgage for an indefinite amount. The mortgagee chooses to file the statement as to the maximum amount secured by the mortgage. Accordingly, such stated maximum amount cannot be less than $3 million.
Example 2:
Same facts as in example 1 of this section, except that a statement as to the maximum amount secured by the mortgage is not filed by the mortgagee when the mortgage is presented for recording and the fair market value of the property covered by the mortgage is $4 million. The mortgage recording taxes would be imposed and computed upon the higher of the portion of the amount secured which is determinable by the terms of the mortgage, which is $3 million, or the fair market value of the property, which is $4 million. Thus, the amount used to compute the taxes would be $4 million.
Example 3:
Same facts as in example 2, except that the fair market value of the property is $2 million. Thus, $3 million is used to compute the mortgage recording taxes.
N.Y. Comp. Codes R. & Regs. Tit. 20 § 648.2