Section 102 Stamp Duties Act

Section 102 of Stamp Duties Act 1939 is about Duty on loan capital. It provides as follows:

(1) Where any corporation, company or body of persons formed or established in Nigeria propose to issue any loan capital, they shall, before the issue thereof, deliver to the Corporate Affairs Commission a statement of the amount proposed to be secured by the issue.

(2) Subject to the provisions of this section, every such statement shall be charged with ad valorem duty of 25 kobo for every 200 naira and any fraction of 200 naira over any multiple of two hundred naira of the amount proposed to be secured by the issue, and the amount of the duty shall be a debt due to the Government of the Federation.

(3) The duty under this section shall not be charged to the extent to which it is shown to the satisfaction of the Corporate Affairs Commission that the duty in respect of a mortgage or marketable security has been paid on any trust deed or other document securing the loan capital proposed to be issued.

(4) If any corporation, company or body of persons neglects to deliver a statement, or fails to pay the duty in compliance with the provisions of this section, that corporation, company or body of persons, shall be liable to pay the Government of the Federation, in addition to the duty, a sum equal to ten per cent upon the amount of the duty, and a like sum for every month after the first month during which the neglect or failure continues.

(5) In this and in section 102 of this Act, “loan capital” means any debenture stock, other stock or funded debt by whatever name known or any capital raised by any corporation, company or body of persons formed or established in Nigeria, which is borrowed, or has the character of borrowed money, whether it is in the form of stock or in any other form, but does not include any overdraft at the bank or other loan raised for a merely temporary purpose for a period not exceeding twelve months.

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