Rule 560-11-8-.11 - Adjustable Rate Mortgages ("ARM")Where an instrument secures a long-term note which contemplates the extension of credit based upon an adjustable interest rate, the intangible tax due is computed as follows:
(a) Where the instrument contemplates negative amortization, the intangible tax is based upon the total amount of the credit contemplated within the instrument, if determinable. In some cases, this win be reflected as a percentage of the initial principal balance and in some cases it win be a fixed dollar amount.(b) If the instrument does not contain a ceiling, or negative amortization may occur based on some future rate index, then the total credit contemplated cannot be determined. The intangible recording tax is then due on the initial principal balance as shown on the face of the instrument, and if negative amortization occurs, the holder of the instrument must execute and submit an affidavit as provided for in Revenue Rule 560-11-8-.05 concerning the intangible recording tax computation on additional advances and pay the intangible recording tax on the additional credit extended.Ga. Comp. R. & Regs. R. 560-11-8-.11
O.C.G.A. Secs. 48-2-12, 48-6-62.
Original Rule entitled "Adjustable Rate Mortgage ("ARM") adopted. F. Jun. 17, 1996; eff. July 7, 1996.