Section 253 Affidavit
(Exemption from Additional Mortgage Tax) (Nonprofit Hospital) (NY)

Summary

This template Section 253 Affidavit is used in New York to confirm to the recorder of mortgages that a mortgagor who is a voluntary nonprofit hospital corporation is exempt from the payment of New York mortgage recording tax if the proceeds of the mortgage are used for hospital purposes. This template includes practical guidance, drafting notes, and alternate clauses. New York State imposes substantial mortgage recording fees and taxes on new mortgages secured by real property and recorded within the state. See NY CLS Tax § 253. In addition to the recording fees and taxes imposed by the state, New York City, Yonkers and other counties impose local taxes on mortgages recorded in those jurisdictions. However, pursuant to N.Y. Tax Law § 253 (3) mortgage recording tax is not imposed upon a voluntary nonprofit hospital corporation, fire company or volunteer ambulance service as defined in N.Y. Gen. Mun. Law § 100. This template is drafted for use by a voluntary nonprofit hospital corporation to claim a mortgage recording tax exemption under N.Y. Tax Law § 253 (3), but can be modified for use by a fire company or volunteer ambulance service by use of the applicable Alternate Paragraph 2. For a detailed discussion of mortgage recording taxes in New York see Mortgage Consolidations: Minimizing Mortgage Taxes (NY). For further information on New York financing transactions see Commercial Real Estate Financing (NY).