Section 40 Stamp Duties Act
Section 40 of Stamp Duties Act 1939 is about Provisions as to stamping foreign bills and notes. It provides as follows:
(1) Every person into whose hands any bill of exchange or promissory note, drawn or made out of Nigeria, comes in Nigeria before it is stamped shall before he presents for payment, or endorses, transfers or in any manner negotiates, or pays the bill or note, affix thereto a proper adhesive stamp or proper adhesive stamps of sufficient amount, and cancel every stamp so affixed thereto: Provided-
(a) that if at the time when any such bill or note comes into the hands of any bona fide holder there is affixed thereto an adhesive stamp effectually cancelled, the stamp shall, so far as relates to the holder be deemed to be duly cancelled, although it may not appear to have been fixed or cancelled by the proper person;
(b) that if at the time when any such bill or note comes into the hands of any bona fide holder there is affixed thereto an adhesive stamp not duly cancelled, it shall be competent for the holder to cancel the stamp as if he were the person by whom it was affixed, and upon his so doing the bill or note shall be deemed duly stamped and as valid and available as if the stamp had been cancelled by the person by whom it was affixed.
(2) Neither of the provisions specified in paragraphs (a) and (b) of subsection (1) of this section shall relieve any person from any fine or penalty incurred by him for not cancelling an adhesive stamp.
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