First Previous (PART 4 Adjudication and Appeals) Next (Chapter 2 Conveyances on Sale)

31 1999



Provisions Applicable to Particular Instruments

Chapter 1

Bills of Exchange and Promissory Notes

Bills and notes purporting to be drawn outside the State.

[SA1891 s36]

22. — A bill of exchange or promissory note which purports to be drawn or made outside the State shall, for the purpose of the stamp duty on such bill of exchange or promissory note, be deemed to have been so drawn or made, although it may in fact have been drawn or made in the State.

Restriction on stamping after execution

[SA1891 s37(2)]

23. — No bill of exchange or promissory note shall be stamped with an impressed stamp after its execution.

One bill only of a set need be stamped.

[SA1891 s39]

24. —(1) When a bill of exchange is drawn in a set according to the custom of merchants, and one of the set is duly stamped, the other or others of the set shall, unless issued or in some manner negotiated apart from the stamped bill, be exempt from duty.

(2) On proof of the loss or destruction of a duly stamped bill of exchange forming one of a set, any other bill of the set which has not been issued or in any manner negotiated apart from the lost or destroyed bill may, although unstamped, be admitted in evidence to prove the contents of the lost or destroyed bill.

Denotion of duty by adhesive stamps.

[FA1970 s41(2) and (3)]

25. —(1) The duty on a bill of exchange or a promissory note may be denoted by an adhesive stamp which shall be cancelled by the person by whom the bill or note is signed before such person delivers it out of his or her hands, custody or power.

(2) Every person who issues, endorses, transfers, negotiates, presents for payment, or pays any bill of exchange or promissory note liable to duty and not being duly stamped shall incur a penalty of £500, and the person who takes or receives from any other person any such bill or note either in payment or as a security, or by purchase or otherwise, shall not be entitled to recover on such bill or note, or to make the same available for any purpose.

(3) Notwithstanding subsection (2), if any bill of exchange is presented for payment unstamped, the person to whom it is presented may affix to it an adhesive stamp of the amount of duty chargeable under this Act in respect of that bill, and cancel the same, as if he or she had been the drawer of that bill, and may, having affixed the stamp and cancelled it, pay the sum in that bill mentioned, and charge the duty in account against the person by whom that bill was drawn, or deduct the duty from that sum, and that bill shall, so far as respects the duty, be deemed valid and available.

(4) The affixing of an adhesive stamp to a bill of exchange in accordance with subsection (3) shall not relieve any person from any penalty incurred by such person in relation to such bill.

Certain bills issued by local authorities to be chargeable as promissory notes.

[FA1897 s8]

26. — Where under the power conferred by any Act any county council or municipal corporation issue bills repayable not later than 12 months from their date, those bills shall, notwithstanding that by the same or any other Act they are charged or secured on any property, fund, or rate, and that the statutory charge is referred to in the bills, be treated for the purpose of this Act, and any Act amending this Act, as promissory notes and not as marketable securities.

Stamping of certain foreign bills of exchange.

[FA1936 s25]

27. — Notwithstanding any enactment to the contrary, a bill of exchange which is presented for acceptance or is accepted or payable outside the State shall not be invalid in the State by reason only that it is not stamped in accordance with the law for the time being in force in the State in relation to stamp duties, and sections 14(1) and 127 shall apply to every such bill of exchange which is unstamped or insufficiently or not properly stamped as if it were an instrument which may legally be stamped after it has been executed within the meaning of sections 14(1) and 127.

Notes promising the payment of sum of money out of a particular fund, etc.

[SA1891 s33(2)]

28. — A note promising the payment of any sum of money out of any particular fund which may or may not be available, or on any condition or contingency which may or may not be performed or happen, shall be deemed a promissory note for that sum of money.