364 SECRETARIAL PRACTICE
of a debenture so redeemed, or the issue of another debenture
n its place shall be treated as the issue of a new debenture
for the purposes of stamp duty.

In considering the duties payable on bills of exchange and
promissory notes, the rates of which are set out in Appendix A,
it is important to bear in mind that there is a clear distinction
between the provisions of the stamp law and the provisions
of the Bills of Exchange Act, 1882. S. 32 of the Stamp Act
defines a bill of exchange as any ‘draft, order, cheque, and
letter of credit, and any document or writing (except a bank
note) entitling or purporting to entitle any person, whether
named therein or not, to payment by any other person of,
or to draw upon any other person for, any sum of money.’

Bills payable A fixed duty of 2d. is payable on bills payable on demand or

on Demand. at sight or on presentation, or within three days after date or
sight. The expression ‘bill of exchange payable on demand’
is defined by s. 32 as including

(2) an order for the payment of any sum of money by a

bill of exchange or promissory note, or for the delivery
of any bill of exchange or promissory note in satisfac-
tion of any sum of money, or for the payment of any
sum of money out of any particular fund which may
or may not be available, or upon any condition or
contingency which may or may not be performed or
happen; and

an order for the payment of any sum of money weekly,
monthly, or at any other stated periods, and also an
order for the payment by any person at any time after
the date thereof of any sum of money, and sent or
delivered by the person making the same to the person
by whom the payment is to be made, and not to the
person to whom the payment is to be made, or to any
person on his behalf.’

Accordingly bills payable on demand, within the meaning
of this section, include orders directing the regular payments
of subscriptions, premiums on policies of insurance, &c.,
and care should be taken that they bear the twopenny
stamp.

An order relating to the payment of money out of a par-
ticular fund chargeable with the fixed duty of two pence
may take the form of a letter delivered to the payee. There
are several cases on this subject, and the two following letters
may be cited as illustrations: —

1. Please to remit to Messrs. Howe Whittaker and
Tatham £700 and charge it in the account with me in

(b)