Stamp Tax on Overdrafts.

(f) Whenever an advance is made by a bank to a person by way of overdraft the bank shall on the last day of each month or within five days thereafter, prepare a statement showing the maximum amount of the overdraft outstanding at the close of business on any day during the month, and shall affix to the statement a stamp or stamps of the value of two cents for every one hundred dollars or fraction thereof of such maximum amount, and the bank shall forthwith render such statement to the person to whom the advances were made and the amount of the stamps so affixed shall forthwith be payable by such person to the bank. An overdraft to be taken into account for the purposes of the statement and the value of the stamps to be affixed, shall not be deemed to be outstanding until the fourth day on which the account is overdrawn.

(g) If the person to whom an advance is made, as mentioned in the next preceding paragraph, closes the account at any time during a month, or if the account becomes payable at any time during a month, the statement mentioned in such paragraph shall be rendered forthwith, the maximum amount of the advances made to the person outstanding at the close of business on any day during the portion of such month shall determine the value of the stamps to be affixed as aforesaid to the statement.

Cancellation of Stamps by Bank.

(h) Every adhesive stamp affixed to a bill of exchange or promissory note, transferred or delivered or issued in the manner hereinbefore set forth, or affixed to a statement to be rendered as hereinbefore set forth, shall be cancelled by the bank at the time of transfer, delivery, issue or rendering.

Stamp Tax on Bank Cheques, etc.

4. No person shall sign a receipt for money paid to him by a bank chargeable against a deposit of money in the bank to his credit until he has affixed to the receipt an adhesive stamp or unless there is impressed thereon by means of a die a stamp of the value of two cents, and every adhesive stamp affixed to such receipt shall be cancelled by the bank at the time the money is paid.

5. No cheque or other bill of exchange shall be issued or paid by a bank unless there is affixed thereto an adhesive stamp or impressed thereon by means of a die a stamp or stamps of the requisite value according to the requirements of this section.

Stamp Tax on Notes, Cheques and Bills Made out of Canada.

6. Every bank having in possession in Canada any promissory note, cheque or other bill of exchange made or drawn out of Canada on which a stamp prepared for the purposes of this Part or authorized to be used in lieu thereof has not been affixed or impressed shall before payment or presentment for acceptance or payment, if the same is payable in Canada, affix thereto an adhesive stamp of the requisite value according to the require-ments of this section, and the value of the stamp so affixed shall be payable to the bank by the person entitled to the proceeds of the note, cheque or bill. The bank shall, before payment or presentment for acceptance or payment, if the stamp is affixed by the bank, cancel the stamp.

Issue of Cheque without Stamp - Penalty.

7. Every person who issues a cheque payable at or by a bank to which there is not affixed an adhesive stamp or on which there is not impressed by means of a die a stamp of the value of two cents shall be liable to a penalty not exceeding fifty dollars.

Transfer or Delivery of Bill or Note without Stamp - Penalty.

8. Every person who (a) transfers a bill of exchange or promissory note to a bank in such manner as to constitute the bank the holder thereof; or,

(b) delivers a bill of exchange or promissory note to a bank for collection; to which there is not affixed an adhesive stamp or on which there is not Impressed by means of a die a stamp of the requisite value according to the requirements of this section shall be liable to a penalty not exceeding fifty dollars.

Receipt for Money Paid by Bank without Stamp - Penalty.

9. Every person who signs a receipt for money paid to him by a bank chargeable against a deposit of money in the bank to his credit to which there is not affixed an adhesive stamp or on which there is not impressed by means of a die a stamp of the value of two cents shall be liable to a penalty not exceeding fifty dollars.