BANKER'S ORDER. A written order given by a customer to a banker to make a payment or series of payments on his behalf. It is commonly used to give authority to a banker to pay subscriptions to clubs and societies year by year, insurance premiums, etc. The following is a specimen form :— January 2, 1910.
. To the British Banking Co., Ltd., Leeds.
Please to pay to the X. & V. Bank, Ltd., London. the sum of £2 2s., my subscription to the A.B. Club for the year 1910, and a like 'sum on January 1 in each succeeding year until otherwise ordered.
Signed. JOHN BROWN.
N.B.—This form to be signed by the mem ber and forwarded by him to his own banker.
A book, like a diary, should be kept and details given under each date of the subscrip tions or other periodical payments which are due to be paid upon such date.
Orders may be given by shareholders to pay all dividends upon their shares in the bank to the credit of their account in the bank, or to another bank. The following is a specimen of a form used for such a purpose : To the X. & Y. Bank, Ltd., London.
The Bank is hereby authorised and re quested to pay to A. & B. Bank, Ltd., Bristol [or to the credit of my account at your Bristol Branch], until this authority is revoked in writing, all dividends and bonuses now or hereafter payable on all shares in the Bank standing in the name of the undersigned.
Dated this tenth day of June, 1910. (Usual signature) J. BROWN.
Name in full—John Brown, Address-2, Lorne Crescent, Bristol.
N.B.—This order must be signed by all the parties in whose names the shares are registered and their addresses added.
STAMP DUTY.-By a minute of the Board of Inland Revenue, May, 1904, the Board desired " to mention that they have some reason to think that orders to bankers for the payment of sums of money at stated periods (e.g., club subscriptions, and instalments of the price of articles purchased on the hire system) are frequently not stamped. The omission of the stamp is doubtless due to a misapprehension as to the provisions of the law ; but it is clear that such orders fall within the definition in Section 32 (b) of the Stamp Act, and should in all cases bear stamps." (See under BILL OF EXCHANGE.) The various debits to a customer's account, which arise out of the order, do not require to be stamped.
An order to a banker to pay over a certain sum of money against delivery of specified securities is also chargeable with the stamp duty of one penny. (See STOCKBROKING TRANSACTIONS.)