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BoE Act – Section 25
Hi all,
I have a few questions regarding S25 of the BoE Act relating to “Inchoate Instruments”.
Q1B The first section refers to “A simple signature on a blank stamped paper stamped with an impress duty stamp is delivered by the signer”. If I am understanding correctly, this is referring to the ” Inchoate” statement of account the bank sends you with It’s signature (corporate seal) on it, before you convert it into a BoE. Is this correct?
Q1B. It says “Blank stamped paper”. Would this not mean that if you were going to complete the statement of account into a BoE pursuant to S25, the statement of account would need to be “blank”?
Q1C. It also says that it is to be stamped with an impress duty stamp. My understanding is that when we complete statement of account, we add the “stamp” as “Valuable consideration”. However it seems that this section implies that the stamp would need to be on the inchoate statement of account before it is issued by the bank?
Q2. S25(3) says “In order that any such instrument when completed may be enforceable against any person who became a party thereto prior to its completion, it must be filled up within a reasonable time, and strictly in accordance with the authority given.”. Could the bank not argue that the authority “was not given” for you to fill up and complete the statement of account? And therefore it was not completed “In accordance with the authority given”?
Full quote of S25 below for reference.
I have watched all the debt discharge webinars and also attempted to ask this one in a Q&A but Mark didn’t get to it as there was way too many questions and ran out of time. I am aware the BoE act prevails and that there is an explanation for these things, but I am just trying to innerstand all these intricate details better so that I don’t get creamed in court. Cheers
“25 -Inchoate Instruments
(1) Where a simple signature on a blank stamped paper stamped with an impress duty stamp is delivered by the signer in order that it may be converted into a bill, it operates as a prima facie authority to fill it up as a complete bill for any amount the stamp will cover, using the signature for that of the drawer or the acceptor or an indorser.
(2) And in like manner when a bill is wanting in any material particular, the person in possession of it has a prima facie authority to fill up the omission in any way he or she thinks fit.
(3) In order that any such instrument when completed may be enforceable against any person who became a party thereto prior to its completion, it must be filled up within a reasonable time, and strictly in accordance with the authority given. Reasonable time for this purpose is a question of fact:
Provided that, if any such instrument after completion is negotiated to a holder in due course, it shall be valid and effectual for all purposes in his or her hands, and he or she may enforce it as if it had been filled up within a reasonable time and strictly in accordance with the authority given.
(4) For the purposes of subsection (1) of this section, duty stamp includes a duty stamp, required, by the law of the State in which the instrument is issued, to be impressed on a bill.”
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