Summer 2012Issue 16
Prestige Title Agency, Inc.

Prestige Title eNews

Summer 2012 

RCandRPMortgage Recording Tax on Breakage Costs Imposed Under Swap Agreements

 

Borrowers considering obtaining commercial loans with swap agreements may want to review the NYS Department of Taxation and Finance's recent tax bulletin (TB-MR-30) issued on June 5, 2012.  The bulletin sets forth the conditions under which breakage costs associated with interest rate swap agreements will or will not result in the imposition of mortgage recording tax.

 

Breakage costs are the costs imposed under the terms of an interest rate swap agreement that allows the borrower to terminate the swap agreement prior to its maturity. 

 

Terminating an interest swap agreement usually becomes a consideration when the borrower needs to refinance in order to obtain more money or to take advantage of falling interest rates.  Since breakage costs can be quite substantial, this issue should be reviewed carefully to ensure that mortgage recording tax does not become an unforeseen cost to the borrower.

 

  

 

If you have any questions or would like further information regarding any of the articles in this newsletter, please contact Keith Eng, Esq. at (212) 651-1200 or keng@prestitle.com.  
 
Also, if there are any topics that you would like us to include in future newsletters, please feel free to e-mail us with suggestions at info@prestitle.com    

 

In This Issue
Announcements
Did you know that Prestige Title handles Commercial transactions nationwide?
 
Did you know that Prestige Title now offers Coop UCC/Plus Policy?
  
Please contact Anthony Chiellino for further details at (212) 651-1200 or achiellino@prestitle.com.
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AddlAdditional Items of Interest

 
Personal Liability for Members of Coop and Condo Boards - Click Here 

 

 

Attorney General Amends Policy for Digitized Offering Plans - Click Here 

 

 

 
If you have any questions or would like further information regarding any of the articles in this newsletter, please contact Keith Eng, Esq. at (212) 651-1200 or keng@prestitle.com.   
 
Also, if there are any topics that you would like us to include in future newsletters, please feel free to e-mail us with suggestions at info@prestitle.com.    
 
 
Prestige Title Agency, Inc. provides Commercial and Residential Title Services Nationwide. For more information, please contact Anthony Chiellino at (212) 651-1200 or achiellino@prestitle.com
 
 
15 W. 39th St. 10th Fl. New York, NY 10018 Tel (212) 651-1200 Fax (212) 651-1201
Member of New York State Land Title Association Member of American Land Title Association