REVENUE (Composition for Stamps.)
| An Ordinance for exempting certain written instruments employed by persons carrying on the business of Bankers from payment of Stamp duties, and for enabling such persons to make composition in lieu of Stamp duties on certain Promissory Notes and Bills of Exchange. | |
| Preamble. | WHEREAS it is expedient to exempt certain written instruments employed by persons carrying on the business. of Bankers from the payment of Stamp duties, and to enable such persons to issue certain unstamped Promissory Notes and Bills of Exchange upon payment of a composition in lieu of the Stamp duties thereon. |
| Drafts on Bankers and Bank deposit receipts exempt from Stamps. | 1. It is therefore hereby enacted by the Governor of Ceylon, with the advice and consent of the Legislative Council thereof, that front and after the passing of this Ordinance, the following instruments shall be exempted from the payment of Stamp duties : any thing. in the Ordinance No. 6 of 1836, entitled "For revising the Stamp duties, and making provision for the general use of Stamps throughout the Colony" to the contrary notwithstanding, that is to say, all draft's or orders for the payment of any sum of money to the bearer on demand, and drawn in any part of this Island upon any Banker or Bankers, or any person or persons carrying on the business of a Banker therein ; provided, that the place where such drafts or orders shall be issued shall be specified therein, and that the same shall bear date on or before the day on which they shall be issued, and provided that the same do not direct the payment to be made by Bills or Promissory Notes. And 2ndly, all Receipts given for money. deposited in hands of any Banker or Bankers, or person or persons carrying on the business of a Banker, to be accounted for on demand ; provided that the same be not expressed to be received of or by the hands of any other than the person or persons to whom it is to be accounted for, and provided that the same shall not contain any agreement or memorandum importing that interest shall be paid on the money so deposited. |
| Bankers having obtained a licence may issue unstamped Promissory Notes and Bills of Exchange. | 2. And it is further enacted, that it shall be lawful, anything in the said. Ordinance No. 6 of 1836, entitled as aforesaid to the contrary notwithstanding, for any person or persons carrying on the business of a Banker or Bankers within this Island, having first duly obtained a licence for that purpose, and given security by bond in manner hereinafter mentioned, to issue on unstamped paper Promissory Notes for any sum of money amounting to One pound or upwards, expressed to be payable to the bearer on demand, or to order, at any period not exceeding Seven days after sight, and also to draw and issue on unstamped paper Bills of Exchange expressed to be payable to order on demand, or at any period not exceeding Seven days after sight, or Twenty-one days after the date thereof. Provided such Bills of Exchange be drawn upon a person or persons carrying on the business of a Banker or Bankers in Colombo, or provided such Bills of Exchange be drawn by any Banker or Bankers at any place within this Island where he or they shall be duly licensed to issue unstamped Notes and Bills, under the authority of this Ordinance, upon himself or themselves, or his or their co-partner or co-partners, payable at any other place within this Island where such Banker or Bankers shall also be duly licensed to issue such Notes and Bills as aforesaid. |
| Treasurer may grant licences to issue unstamped Promissory Notes, &c: | 3. And it is further enacted, that it shall be lawful for the Treasurer of this Colony to grant to all persons carrying on the business of Bankers therein, who shall require the same, licences authorizing such persons to issue such Promissory Notes, and to draw and issue such Bills of Exchange as aforesaid on unstamped paper, which said licences shall be and are hereby respectively charged with a Stamp duty of Twenty pounds for every such licence, except such licences as shall be granted to any person or persons carrying on the business of a Banker within this Island, under and by virtue of the authority of any Charter or Letters Patent from the Crown, and which licences the said Treasurer is hereby required to grant, free of all duty, upon application from any such person or persons. And every such licence (notwithstanding any alteration which may take place in any co-partnership of persons to whom the same shall be granted,) shall have effect, and continue in force from the day of the date thereof, until the same day of the same month in the year next following, both inclusive, and no longer. |
| Separate licences when to be taken out | 4. And it is further enacted, that a separate licence shall be taken Out in respect of every town or place where any such unstamped Promissory Notes or Bills of Exchange as aforesaid, shall be issued or drawn. Provided always, that no person or persons shall be obliged to take out more than Three licences in all for any number of towns or places in this Island. And in case any person or persons shall issue or draw such unstamped Notes or Bills as aforesaid at more than Three different towns or places, then, after taking out two distinct licences for two of such towns or places, such person or persons shall be entitled to have all the rest of such places included in such third licence. |
| Notes and Bills to be re-issuable. | 5. And it is further enacted, that all such Notes and Bills may be re-issued as often as shall be required. |
| Bankers while licensed under this Ordinance, not to issue for the first time Notes on stamped paper. | 6. Provided always, and it is further enacted, that if any Banker or Bankers, who shall take out a licence under the authority of this Ordinance, shall issue under the authority either of this or any other Ordinance, any unstamped Promissory Notes for payment of money to the bearer on demand, such Banker or Bankers shall, so long as he or they shall continue licensed as aforesaid, make and issue on unstamped paper all his or their Promissory Notes for payment of money to the bearer on demand, of whatever amount such Notes may be, and it shall not be lawful for such Banker or Bankers, during the period aforesaid, to issue for the first time any such Promissory Note as aforesaid on Stamped paper. |
| Bankers licensed, to give security. | 7. And it is further enacted, that before any licence shall be granted to any person or persons to issue or draw any unstamped Promissory Notes or Bills of Exchange under the authority of this Ordinance, such person or persons shall give Security by bond to Her Majesty, Her Heirs and Successors, with a condition that if such person or persons do and shall from time to time enter or cause to be entered in a ,book or books to be kept for that purpose, an account of all such unstamped Promissory Notes and Bills of Exchange as he or they shall so as aforesaid issue or draw, specifying the amount or value thereof respectively, and the several dates of the issuing thereof, and in like manner also a similar account of all such Promissory Notes as having been issued as aforesaid shall have been cancelled, and the dates of the cancelling thereof, and of all such Bills of Exchange as having been drawn or issued as aforesaid, shall have been paid, and the dates of the payments thereof, and do and shall from time to time, when thereunto requested, produce and show such accounts to, and permit the same to be examined and inspected by the Treasurer, and also do and shall deliver to the said Treasurer half-yearly (that is to say) within Fourteen days after the First day of January and the First day of July in every year, a just and true account in writing verified upon the Oaths or Affirmations (which any Justice of the Peace is hereby empowered to administer,) to the best of the knowledge and belief of such person or persons, and of his or their Cashier, Accountant, or Chief Clerk, or of such of them as the said Treasurer shall require, of the amount or value of all unstamped Promissory Notes and Bills of Exchange issued under the provisions of this Ordinance, in circulation within the meaning of this Ordinance on a given day (that is to say), on Saturday in every week for the space of half a year prior to the half yearly day immediately preceding the delivery of such accounts, together with the average amount or value of such Notes and Bills so in circulation according to such account, and also do and shall pay or cause to be paid to the Treasurer as a Composition for the duties which would otherwise have been payable for such Promissory Notes and Bills of Exchange issued or in circulation during such half year, the sum of Three shillings and Six-pence for every One hundred pounds, and also for the fractional part of One hundred pounds, of the said average amount or value of such Notes and Bills in circulation, according to the true intent and meaning of this Ordinance ; and on due performance thereof such Bond shall be void, but otherwise the same shall be and remain in full force and virtue. |
| For what periods Notes and Bills are to be deemed to be in circulation. | 8. And it is further enacted, that every unstamped Promissory Note, payable to the bearer on demand, issued under the provisions of this Ordinance, shall for the purpose of payment of duty, be deemed to be in circulation from the day of the issuing to the day of the canceling thereof, both days inclusive, excepting nevertheless the period during, which such Note shall be in the hands of the Banker or Bankers who first issued the same, or by whom the same shall be expressed to be payable; and that every unstamped Promissory Note payable to order, and every unstamped Bill of Exchange so as aforesaid issued, shall, for the purpose aforesaid, be deemed to be in circulation from the day of the issuing to the day of the payment thereof, both days inclusive: provided always, that every such Promissory Note payable to order, and Bill of Exchange as aforesaid, which shall be paid in less than Seven days from the issuing thereof, shall, for the purpose aforesaid, be included in the account of Notes and Bills in circulation on the Saturday next after the day of the issuing thereof, as if the same were then actually in circulation. |
| Regulations respecting the Bonds to be given pursuant to this Ordinance. | 9. And it is further enacted, that in every Bond to be given, pursuant to the directions of this Ordinance, the person or persons intending to issue or draw any such unstamped Promissory Notes and Bills of Exchange as aforesaid, or such and so many of the said persons as the Treasurer shall require, shall be the Obligors. And every such Bond shall be taken in the sum of One hundred pounds, or in such larger sum as the said Treasurer may judge to be the probable amount of the Composition or duties that will be payable from such person or persons under or by virtue of this Ordinance during the period of one year. And it shall be lawful for the said Treasurer to fix the time or times of payment of the said Composition or duties, and to specify the same in the condition to every such Bond. And every such Bond may be required to be renewed from time to time at the discretion of the said Treasurer,. and as often as the same shall be forfeited, or the parties to the same, or any of them shall die, become bankrupt, or insolvent, or reside in parts beyond the seas. |
| Fresh Bonds to be given on alterations of co-partnerships. | 10. And it is further enacted, that if any alteration shall be made in any co-partnership of persons who shall have given any such security by Bond as by this Ordinance is directed, whether such alteration shall be caused by the death or retirement of one or more of the partners of the firm, or by the accession of any additional or new partner or :partners, a fresh. Bond shall be given by the remaining partner or partners, or the persons composing the new co-partnership, as the case may be, which Bond shall be taken as a security for the duties which may be due and owing, or may become due and owing in respect of the unstamped Notes and Bills which shall have been issued by the persons composing the old co-partnership, and which shall be in circulation at the time of such alteration, as well as for duties which shall or may be or become due or owing in respect of the unstamped Notes and Bills issued, or to be issued by the persons composing the new co-partnership. Provided always that no such fresh Bond shall be rendered necessary by any such alteration as aforesaid in any co-partnership of persons exceeding Six in number, but that the Bonds to be given by such last mentioned co-partnerships shall be taken as securities for all the duties they may incur, so long as they shall exist, or the persons composing the same or any of them shall carry on business in co-partnership together, or with any other person or persons, notwithstanding any alteration in such co-partnership, saving always the power of the said Treasurer to require a new Bond in any case where he shall deem it necessary for better securing the payment of the said duties. |
| Penalty on Bankers neglecting to renew their Bonds. | 11. And it is further enacted, that if any person or persons who shall have given security by Bond to Her Majesty in the manner herein before directed, shall refuse or neglect to renew such Bond when forfeited, and as often as the same is by this Ordinance required to be renewed, such person or persons so offending shall, for every such offence, forfeit and pay the sum of Fifty pounds. |
| And on post-dating unstamped Notes and Bills. | 12. And it is further enacted, that if any person or persons who shall be licensed under stamped Notes or Bills, the provisions of this Ordinance shall draw or issue, or cause to be drawn or issued upon unstamped paper, any Promissory Note payable to order, or any Bill of Exchange which shall bear date subsequent to the day on which it shall be issued, the person or persons so offending shall, for every such Note or Bill so drawn or issued, forfeit the sum of Fifty pounds. |
| This Ordinance not to exempt from penalties persons issuing unstamped Notes or Bills not in accordance herewith. | 13. Provided always, and it is further enacted, that nothing in this Ordinance contained shall extend or be construed to extend to exempt or relieve from the forfeitures or penalties imposed by any Ordinance now in force upon persons issuing Promissory Notes or Bills of Exchange not duly stamped as the law requires, any person or persons who, under any colour or pretense whatsoever, shall issue any unstamped Promissory Note or Bill of Exchange, unless such person or persons shall be duly licensed to issue such Note or Bill under tie provisions of this Ordinance, and such Note or Bill shall be drawn and issued hi strict accordance with the regulations and restrictions herein contained. |
| E. L. MITIFORD, |
| Acting Clerk to the Council. |
| Published by Order of His Excellency the Governor. |
| P. ANSTRUTHER, |
| Colonial Secretary. |
See Repeal by Ceylon Ordinance No 2 of 1861