2023 New York Laws › TAX - Tax › Article 11 - Tax on Mortgages › 256 - Mortgages for Indefinite Amounts or for Contract Obligations.

§ 256.  Mortgages  for indefinite amounts or for contract obligations.
  If the principal indebtedness secured or which by any contingency may be
  secured by a  mortgage  is  not  determinable  from  the  terms  of  the
  mortgage,  or  if  a  mortgage is given to secure the performance by the
  mortgagor or any other person of a contract obligation  other  than  the
  payment  of  a  specific  sum of money and the maximum amount secured or
  which by any contingency may be secured by the mortgage is not expressed
  therein, such mortgage shall be taxable under section  two  hundred  and
  fifty-three  of  this  chapter upon the value of the property covered by
  the mortgage, which shall be determined by the recording officer to whom
  such mortgage is presented for record, unless at the time of  presenting
  such mortgage for record the owner thereof shall file with the recording
  officer  a  sworn statement of the maximum amount secured or which under
  any contingency may be secured by the mortgage. If such  maximum  amount
  is  expressed  in the mortgage or in a sworn statement filed as required
  by this section, such amount shall be the basis for  assessing  the  tax
  imposed  by  this  article. A statement filed by the owner of a mortgage
  pursuant to this section shall thereafter at all times be  binding  upon
  and  conclusive  against  such  owner,  the  holders  of  any  bonds  or
  obligations secured by such mortgage and all  persons  claiming  through
  the mortgagee any interest in the mortgage or the mortgaged premises. If
  the maximum amount secured or which by any contingency may be secured by
  the mortgage is not expressed in the mortgage or in a sworn statement as
  authorized  by  this  section,  the  recording  officer at the time such
  mortgage is offered for record may require the mortgagor or mortgagee to
  furnish him with proofs as to such facts as he deems necessary  for  the
  purpose  of  computing the value of the property covered by the mortgage
  and such proofs shall include an affidavit of appraisal of the value  of
  the  property  made by at least two competent, disinterested persons and
  shall be preserved in his office. His determination and  copies  of  the
  proofs  as  to the basis for computing the tax on such mortgage shall be
  forwarded to and subject to review by the  state  tax  commission.  Such
  mortgage  shall  not  be  recorded  until  the statement is filed or the
  proofs are furnished as required by this article.
Whenever any such  mortgage  shall  have  been  recorded  without  the
  payment  of  the  tax  as  herein  provided,  and it shall thereafter be
  determined by the tax commission, after an opportunity to  be  heard  by
  the  parties in interest, that the failure to pay such tax was due to an
  honest misconception on the part of the recording officer or  the  owner
  of the instrument as to the nature of such instrument and its taxability
  under  this article, the tax commission may make an order permitting the
  recording officer to file the aforesaid statement nunc pro  tunc  as  of
  the date of the recording of the mortgage. The payment of the tax may be
  made on the basis of such statement with interest thereon at the rate of
  six  per  centum  per  annum  as  provided  in  section  two hundred and
  fifty-eight of this article.