APPENDIX. THE STAMP ACT, 1870. SECT. 97, SUB-SECt. 3, of the Bills of Exchange Act, 1882, AN Act for granting certain Stamp Duties in lieu of duties of the same kind now payable under various Acts, and consolidating and amending provisions relating thereto. [10th August, 1870.] 7.-(1.) Every instrument written upon stamped material is to be written in such manner, and every instrument partly or wholly written before being stamped is to be so stamped, that the stamp may appear on the face of the instrument, and cannot be used for or applied to any other instrument written upon the same piece of material. (2.) If more than one instrument be written upon the same piece of material, every one of such instruments is to be separately and distinctly stamped with the duty with which it is chargeable. 11.-Where an instrument is chargeable with ad valorem duty in respect of any money in foreign or Colonial currency, such duty shall be calculated on the value of such money in British currency according to the current rate of exchange on the day of the date of the instrument. 15.-(1.) Except where express provision to the contrary is made by this or any other Act, any unstamped or insufficiently stamped instrument may be stamped after the execution thereof on payment of the unpaid duty and a penalty of ten pounds, and also by way of further penalty, where the unpaid duty exceeds ten pounds of interest on such duty, at the rate of five pounds per centum per annum, from the day upon which the instrument was first executed up to the time when such interest is equal in amount to the unpaid duty. And the payment of any penalty or penalties is to be denoted on the instrument by a particular stamp. (2) Provided as follows: (a) Any unstamped or insufficiently stamped instrument, which has been first executed at any place out of the United Kingdom, may be stamped at any time within two months after it has been first received in the United Kingdom, on payment of the unpaid duty only : (b) The Commissioners may, if they think fit, at any time within twelve months after the first execution of any instrument, remit the penalty or penalties, or any part thereof. SS. 15, 17, 23, 24. Terms upon which instruments may be stamped after execution. 17.-Save and except as aforesaid, no instrument executed in any Instrument not part of the United Kingdom, or relating, wheresoever executed, to any inadmissible. duly stamped property situate, or to any matter or thing done or to be done, in any part of the United Kingdom, shall, except in criminal proceedings, be pleaded or given in evidence, or admitted to be good, useful, or available in law or equity, unless it is duly stamped in accordance with the law in force at the time when it was first executed. 23.-Except where express provision is made to the contrary, all How duties to duties are to be denoted by impressed stamps only. be denoted. General direction as to the cancellation of adhesive 24.-(1.) An instrument, the duty upon which is required, or permitted by law, to be denoted by an adhesive stamp, is not to be deemed duly stamped (a). with an adhesive stamp unless the person required by law to cancel such adhesive stamp cancels the same by stamps. writing on or across the stamp his name or initials, or the name or initials of his firm, together with the true date of his so writing, so that the stamp may be effectually cancelled (b), and rendered incapable of being used for any other instrument, or unless it is otherwise proved that the stamp appearing on the instrument was affixed thereto at the proper time. (2.) Every person who, being required by law to cancel an adhesive stamp, wilfully neglects or refuses duly and effectually to do so in manner aforesaid, shall forfeit the sum of ten pounds (c). (a) The presumption is in favour of the bills having been duly stamped at the proper time, Bradlaugh v. De Rin, L. R. 3 C. P. 286. See sect. 54, note (a) post. (b) The cancellation may be done by a stamping machine; the stamp may be cancelled at any time before verdict, even in open court; Viale v. Michael, 30 L. T. N. S. 463. See Pooley v. Brown, 11 C. B. N. S. 566; 31 L. J. C. P. 134, cited in sect. 54, post. (c) By the Revenue, &c., Act, 1882 (45 & 46 Vict. c. 72), it is further enacted: Sect. 14. (1.) Where two or more adhesive stamps are used to denote a stamp duty upon an instrument, such instrument is not to be deemed duly stamped unless the person upon whom the duty of cancellation is by law imposed cancels each or every stamp by writing on or across M Penalty for neglect or refusal, £10. General direc SS. 24, 45, 46, the same his name or initials, or the name or initials of his firm, 47, 48. together with the true date of his so writing, so that both or all and every of the stamps may be effectually cancelled and rendered incapable of being used for any other instrument, or for any postal purpose, or unless it is otherwise proved that the stamps appearing on the instrument were affixed thereto at the proper time. tion as to the cancellation of adhesive stamps. Interpretation of terms. Bank notes may be reissued. Penalty for issuing an unstamped bank note, £50. For receiving, £20. Interpretation of term "bill of exchange." (2.) If any person contravenes this section, he shall incur the penalty imposed by sect. 24 of the Stamp Act, 1870. 45.-The term "banker " means and includes any corporation, society, partnership, and persons, and every individual person carrying on the business of banking in the United Kingdom. The term "bank note " means and includes: (1.) Any bill of exchange or promissory note issued by any banker, other than the Governor and Company of the Bank of England, for the payment of money not exceeding one hundred pounds to the bearer on demand: (2.) Any bill of exchange or promissory note so issued which entitles or is intended to entitle the bearer or holder thereof, without indorsement, or without any further or other indorsement than may be thereon at the time of the issuing thereof, to the payment of money not exceeding one hundred pounds on demand, whether the same be so expressed or not, and in whatever form, and by whomsoever such bill or note is drawn or made. 46.-A bank note issued duly stamped, or issued unstamped by a banker duly licensed or otherwise authorised to issue unstamped bank notes, may be from time to time re-issued without being liable to any stamp duty by reason of such re-issuing. 47.-(1.) If any banker, not being duly licensed or otherwise authorised to issue unstamped bank notes, issues, or causes or permits to be issued, any bank note not being duly stamped, he shall forfeit the sum of fifty pounds. (2.) If any person receives or takes any such bank note in payment or as a security, knowing the same to have been issued unstamped contrary to law, he shall forfeit the sum of twenty pounds. 48.-(1.) The term "bill of exchange" for the purposes of this Act includes also draft, order, cheque (a), and letter of credit, and any document or writing (except a bank note) entitling or purporting to entitle any person, whether named therein or not, to payment by any other person of, or to draw upon any other person for, any sum of money therein mentioned. (2.) An order for the payment of any sum of money by a bill of exchange or promissory note, or for the delivery of any bill of exchange or promissory note in satisfaction of any sum of money, or for the 51. Interpretation of term "bill of exchange.” payment of any sum of money out of any particular fund which may or SS. 48, 49, 50, may not be available, or upon any condition or contingency which may or may not be performed or happen, is to be deemed for the purposes of this Act a bill of exchange for the payment of money on demand (b). (3.) An order for the payment of any sum of money weekly, monthly, or at any other stated periods, and also any order for the payment by any person at any time after the date thereof of any sum of money, and sent or delivered by the person making the same to the person by whom the payment is to be made, and not to the person to whom the payment is to be made, or to any person on his behalf, is to be deemed for the purposes of this Act a bill of exchange for the payment of money on demand. (a) A cheque may be post-dated; Bills of Exchange Act, 1882, sect. 13, sub-sect. 2. A cheque with a penny stamp, post-dated, is admissible in evidence in an action brought by the holder, though he took it with knowledge of the post-dating; Gatty v. Fry, 2 Ex. D. 265; 46 L. J. Ex. 605; 36 L. T. N. S. 182; 25 W. R. 305. (b) A letter in these words: "I hereby assign to R. & Son the sum of £40, or any other sum now due, or that may hereafter become due in respect of the steam launch," &c., has been held to be an assignment of a debt, and not an order for the payment of money within this section, Buck v. Robson, 3 Q. B. D. 686; 48 L. J. Q. B. 250; 39 L. T. N. S. 325; 26 W. R. 804; see also Brice v. Bannister, 3 Q. B. D. 569, where it appears to have been assumed on all hands that subject to the disputed question as to how far the defendant was entitled to set off the advances subsequently made by him to the assignor, the effect of the instrument was as between the builder and the defendant to all intents and purposes an assignment of the debt. Buck v. Robson was followed in Fisher v. Calvert, 27 W. R. 301, per Jessel, M.R., overruling, Ex parte Shellard, In re Adams, L. R. 17 Eq. 109; 22 W. R. 152. 49. (1.) The term "promissory note means and includes any document or writing (except a bank note) containing a promise to pay any sum of money. (2.) A note promising the payment of any sum of money out of any particular fund which may or may not be available, or upon any condition or contingency which may or may not be performed or happen, is to be deemed for the purposes of this Act a promissory note for the said sum of money (a). (a) “I, D., promise to pay Y. on his signing a lease of the Castle Hotel £150," is a note within this section, and cannot be stamped, by s. 53, after execution as an agreement, Yeo v. Dawe, 32 W. R. 203. 50. The fixed duty of one penny on a bill of exchange for the payment of money on demand may be denoted by an adhesive stamp, which is to be cancelled by the person by whom the bill is signed before he delivers it out of his hands, custody, or power. Interpretation of term "pro missory note." The fixed duty may be denoted by adhesive stamp. SS. 51, 52, 53, 54. Ad valorem duties to be denoted in certain cases by adhesive stamps. Provisoes for the protection of bonâ fide holders. Not to relieve any other person. Bills and notes Terms upon Penalty for be unavailable. 51. (1.) The ad valorem duties upon bills of exchange and promissory notes drawn or made out of the United Kingdom are to be denoted by adhesive stamps. (2.) Every person into whose hands any such bill or note comes in the United Kingdom before it is stamped shall, before he presents for payment, or indorses, transfers, or in any manner negotiates, or pays such bill or note, affix thereto a proper adhesive stamp or proper adhesive stamps of sufficient amount, and cancel every stamp so affixed thereto. (3.) Provided as follows: (a) If at the time when any such bill or note comes into the hands of any bonâ fide holder thereof there is affixed thereto an adhesive stamp effectually obliterated, and purporting and appearing to be duly cancelled, such stamp shall, so far as relates to such holder, be deemed to be duly cancelled, although it may not appear to have been so affixed or cancelled by the proper person. (b) If at the time when any such bill or note comes into the hands of any bonâ fide holder thereof there is affixed thereto an adhesive stamp not duly cancelled, it shall be competent for such holder to cancel such stamp as if he were the person by whom it was affixed, and upon his so doing such bill or note shall be deemed duly stamped, and as valid and available as if the stamp had been duly cancelled by the person by whom it was affixed. (4.) But neither of the foregoing provisoes is to relieve any person from any penalty incurred by him for not cancelling any adhesive stamp. 52. A bill of exchange or promissory note purporting to be drawn or made out of the United Kingdom is, for the purposes of this Act, to be deemed to have been so drawn or made, although it may in fact have been drawn or made within the United Kingdom. 53. (1.) Where a bill of exchange or promissory note has been written on material bearing an impressed stamp of sufficient amount but of improper denomination, it may be stamped with the proper stamp on payment of the duty, and a penalty of forty shillings if the bill or note be not then payable according to its tenour, and of ten pounds if the same be so payable. (2.) Except as aforesaid, no bill of exchange or promissory note shall be stamped with an impressed stamp after execution thereof. 54. (1.) Every person who issues, indorses, transfers, negotiates, presents for payment, or pays any bill of exchange or promissory note liable to duty and not being duly stamped (a), shall forfeit the sum of ten pounds, and the person who takes or receives from any other person any such bill or note not being duly stamped, either in payment or as a security, or by purchase or otherwise, shall not be entitled to recover thereon, or to make the same available for any purpose whatever (b). |