DOMINION OF CANADA STATUTES 

37 Victoria 1874

CHAP. 47.

An Act to amend the Law relating to Bills of Exchange
and Promissory Notes, and the Stamps thereon.

[Assented to 26th May, 1874.]
  
Whereas it is desirable that the law relating to Bills of Exchange and Promissory Notes should be amended in the particulars in this Act mentioned: Therefore Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Preamble
 1. Notice of the protest or dishonor of any bill of exchange or promissory note payable in Canada, shall be sufficiently given, if addressed, in due time, to any party to such bill or note, entitled to such notice, at the place at which such bill or note is dated, unless any such party has, under his signature, on such bill or note, designated another place, when such notice shall be sufficiently, given, if addressed to him, in due time, at, such other place; and such notices so addressed shall be sufficient, although the place of residence of such party be other than either of such before mentioned places. Notice of protest, &c., of bill or note, when held to be sufficiently given.
 2. Section twelve substituted by the Act passed in the thirty-third year of Her Majesty's reign, chapter thirteen, for section twelve of the Act passed in the thirty-first year of Her Majesty's Reign, chapter nine, shall be and is hereby repealed, and the following section is substituted for the said section so repealed:-- Section 12 of 33 V., c. 13 repealed. 
 "12. Any holder of such instrument may, pay double duty by affixing to such instrument a stamp or stamps to the amount thereof or to the amount of double the sum by which the stamps affixed fall short of the proper duty, and by writing his initials on such stamp or stamps, and the date on which they were affixed; and where in any suit or proceeding in law or equity, the validity of any such instrument is questioned by reason of the proper duty thereon not having been paid at all, or not paid by the proper party, or at the proper time, or of any formality as to the date or erasure of the stamps affixed having been omitted or a wrong date placed thereon, and it appear that the holder thereof, when he became such holder, had no knowledge of such defects, such instrument shall be held to be legal and valid, if it shall appear that the holder thereof paid double duty, as in this section mentioned, so soon as he acquired such knowledge, even although such knowledge shall have been acquired only during such suit or proceeding; and if it shall appear in any such suit or proceeding to the satisfaction of the court or judge, as the case may be, that it was through mere error or mistake, and without any intention to violate the law on the part of the holder, that any such defect as aforesaid existed in relation to such instrument, then such instrument or any endorsement or transfer thereof, shall be held legal and valid, if the holder shall pay the double duty thereon as soon as he is aware of such error or mistake; but no party who ought to have paid duty thereon shall be released from the penalty by him incurred as aforesaid."

New section substituted.

Innocent holder of unstamped or insufficiently stamped note, &c., may make it valid by payment of double duty, &c.

 3. Now withstanding anything in the Acts before mentioned of in this Act, from and after the first day of August next; after the passing of this Act, any bank or any broker who makes, draws or issues or negotiates, presents for payment, or pays, or takes, or receives, or becomes the holder of any instrument not duly stamped, either as a deposit, or is payment, or as a security, or for collection or otherwise, knowing the same not to be duly
stamped, and who does not immediately on making, drawing, issuing, negotiating or presenting for payment, or paying or taking, or receiving or becoming the holder of such instrument affix thereto and cancel the proper stamps within the meaning of the Act thirty-first Victoria, chapter nine, shall incur a penalty of five hundred dollar for every such offence; and shall not be entitled to recover on such instrument, or to make the same available for any purpose whatever, and any such instrument shall be invalid and of no effect in law or equity.

Penalty and forteiture on bank or broker making, buying or taking, &c., note not duly stamped after 1st Aug., 1874.

 

31 V., c. 9.

 4. Notwithstanding anything in the Acts before mentioned or in this Act contained, no bill of exchange drawn and payable outside of the Dominion of Canada shall be invalid, nor shall the maker or any owner or holder of any such bill be subject to any penalty in consequence of no stamp or stamps of this Dominion being affixed to such bill.
No Dominion stamps required on bill of exchange drawn and payable outside the Dominion.
 5. In this Act the word " Bank " means and includes any chartered bank, and any banking institution, and any branch or agency thereof. Interpretation.
The word " Broker " means and includes any broker or person by repute doing the business of brokerage. 
 
 The word "Instrument " means and includes any promissory note, bill of exchange, or part thereof, draft or order, upon which a duty is payable under the Act thirty-first Victoria, chapter nine.
 
 6. This Act shall only go into force from and after the first day of August next. Commencement of Act.

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