An Ordinance to repeal the Ordinance No. 23 of 1844, and to enable Bankers to compound for the Stamp Duties payable on Notes and Bills issued by them.
Preamble.	WHEREAS it is expedient to repeal the Ordinance No. 23 of 1844, entitled "An Ordinance for exempting certain written instruments employed by persons carrying on the business of bankers from payment of certain Duties, and for enabling such persons to make composition in lieu of Stamp Duties on certain Promissory Notes and Bills of Exchange," and to enable bankers authorized to issue promissory notes and bills of exchange in Ceylon to issue the same unstamped : It is hereby enacted as follows :
	1. Has had its effect.
	2. Repealing clause.
Interpretation clause.	3. The word "banker " as used in this Ordinance shall be deemed and taken to include any banking corporation or company.
What banks may issue unstamped notes.	4. It shall be lawful for the banks now established in this island, (to wit, the Oriental Bank Corporation, and the Chartered Mercantile Bank of India, London, and China,) and any other bank named in any proclamation to be issued by the Governor in manner herein-after provided, or for the agent or manager thereof, having first obtained a certificate as herein-after provided from the Commissioner of Stamps of this Colony, to issue on unstamped paper promissory notes for any sum of money amounting to ten shillings or upwards, expressed to be payable to 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 banker in Colombo, or provided such bills be drawn by any banker, or the agent of any banker, at any place within this Colony, upon such banker or his copartners, payable at any other place also within this Colony.
Notes and bills to be reissuable	5. All such unstamped notes and bills may be reissued as often as shall be required.
Bankers while licensed not to issue notes on stamped paper.	6. Provided that if any banker who shall take out a certificate under the authority of this Ordinance shall issue under the authority of this or any other Ordinance any unstamped promissory notes for payment of money to the bearer on demand, such banker shall for the period of time to which such certificate shall extend make and issue on unstamped paper all his 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 during the period aforesaid to issue, for the first time, any such promissory note as aforesaid on stamped paper.
Composition to be paid for the privilege of issuing unstamped notes and bills.     Composition to be secured by bond.	7. Every banker issuing unstamped notes and bills as aforesaid shall be liable to pay every half year, to the Commissioner of Stamps, for the use of Her Majesty, her heirs and successors, as a composition for the stamp duties which would otherwise have been payable for such promissory notes and bills of exchange, the sum of ten shillings for every one hundred pounds, and also for the fractional part of one hundred pounds, of the average amount or value of such notes and bills issued and in circulation during such half year ; and the said composition shall be secured by bond to be entered into by such banker; which bond shall be substantially in the form and with the condition set out in the form A. in the schedule to this Ordinance annexed.
Duration of certificate.	8. On the banker entering into such bond the Commissioner of Stamps shall issue a certificate in the form B. in the schedule to this Ordinance annexed ; and such certificate 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 days inclusive, and no longer.
For what period notes and bills are to be deemed to be in circulation.	9. 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 cancelling thereof, both days inclusive, excepting nevertheless the period during which such note shall be in the hands of the banker who first issued the same, or by whom the same shall be expressed to he payable ; and every unstamped promissory note payable to order, and every unstamped bill of exchange so issued as aforesaid, 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 by bankers.	10. In every bond to be given pursuant to the provisions of this Ordinance, the person or persons intending to issue any such unstamped promissory notes, or to draw or issue any such unstamped bills of exchange as aforesaid, or such or so many of the said persons as the Commissioner of Stamps 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 Commissioner may judge to be the probable amount of the composition for 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 Commissioner to fix the time or times of payment of the said composition, 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 Commissioner, and as often as the same shall be forfeited, or the parties to the same or any of them shall die, become insolvent, or reside out of this Colony.
Fresh bonds to be given on alteration of partnership.	11. If any alteration shall be made in any copartnership of persons who shall have given any such security by bond as aforesaid, 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, a fresh bond shall be given by the remaining partner or partners, or the persons composing the new copartnership, 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 may have been issued by the persons composing the old copartnership, 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 and owing in respect of the unstamped notes and bills issued or to be issued by the persons composing the new copartnership : Provided that no such fresh bonds shall be rendered necessary by any such alteration as aforesaid, in any copartnership of persons exceeding six in number, but that the bonds to be given by such last-mentioned copartnerships 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 copartnership together, or with any other person or persons, notwithstanding any alteration in such copartnership, saving always to the Commissioner of Stamps the power of requiring 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 bond.	12. If any person who shall have given security by bond to Her Majesty as aforesaid shall refuse or neglect to renew such bond when forfeited, and as often as the same is by this Ordinance required to be renewed, he shall for every such offence forfeit a sum not exceeding fifty pounds.
Penalty on bankers post dating unstamped notes and bills.	13. If any banker acting under 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 subsequently to the day on which it shall be issued, he shall for every such note or bill forfeit the sum of fifty pounds.
Ordinance not to exempt from penalties persons issuing unstamped notes, or bills not in accordance herewith.	14. Nothing in this Ordinance contained shall be deemed or construed to exempt or relieve from the forfeitures or penalties imposed by any Ordinance in force upon persons issuing promissory notes or bills of exchange, not duly stamped as the law requires, any person who under any colour or pretence whatever shall issue any unstamped promissory note or bill of exchange, unless such person shall hold a certificate under the provisions of this Ordinance, and unless such note or bill shall be drawn and issued in strict accordance with the regulations and restrictions herein contained.
Governor may by proclamation bring other licensed banks under this Ordinance.	15. Whenever any banker shall be authorized, either by any charter or letters patent from the Crown, or by any Ordinance enacted in this Colony, to issue notes, it shall be lawful for the Governor by proclamation to be by him issued, with the advice and consent of the Executive Council, to notify the same, and to declare that such banker is entitled to be admitted to the privileges by this Ordinance conferred ; and upon such proclamation being made, and the banker complying with the requisites of this Ordinance, he shall become subject to its provisions, and liable to conform thereto, and be chargeable with the penalties imposed thereby, as fully a% if he had been expressly referred to herein.

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Know all men by these presents that we _________, are held and firmly bound unto Our Sovereign Lady Queen Victoria, her heirs and for successors, in the sum £__________, for payment of which we bind ourselves jointly and severally our heirs, executors, and administrators firmly by these presents.
The condition of this obligation is such that if the above-bounden ___________ 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 unstamped promisesory notes expressed to be payable to the bearer on demand, or to order, at any period not exceeding seven days after sight, and of all unstamped 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, as he shall 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 canceling thereof, and of all such bills of exchange as, having been drawn or issued as aforesaid, shall have been paid, and the payments thereof, and do and shall from time to time, when thereunto requested, produce and show such accounts to, and permit them to be examined and inspected by, the Commissioner of Stamps ; and also do and shall deliver to the commissioner 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 to the best of the knowledge and belief of the said _________ and of his manager, cashier, and accountant, a chief clerk, or of such of them Its the said commissioner shall require, of the amount or value of all unstamped promissory notes and bills of exchange issued under the authority of the Ordinance No. __________ of __________ in circulation, within the meaning of the said 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 proceeding 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 said commissioner, as a composition for the stamp 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 __________ 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 true intent and meaning of the said Ordinance ; on due‘ performance thereof this obligation shall be void, otherwise it shall be and remain in full force and virtue.

Given under our hands, at Colombo, this day __________ of __________ A.D. 186 .

I, A.B., Commissioner of Stamps, do hereby certify that hath complied with the provisions of the Ordinance No. entitled and hath become entitled to issue unstamped promissory notes and bills in pursuance of the said Ordinance.

Dated this __________ day of__________ A.D. 186 . A.B.
28th August 1861.