DRAFT AFTER DATE. In addition to drafts on demand, country bankers issue drafts after date upon their London agents or London offices. They are drawn at seven, fourteen or twenty-one days after date, and are issued free of charge. the banker obtain ing his remuneration from the interest upon the money between the date he received it and the date on which the draft is due. The various inland revenue collections are remitted from all over the country to London by means of bankers' after date drafts. Drafts for this purpose do not require to stamped.
After date drafts are not much in request in many parts of the country, but in certain districts they are in common use for making payments which are usually made elsewhere by means of cheques. Where this practice exists, a customer supplies his banker with a list of the amounts for which he requires drafts. The banker draws a draft for each amount on the list, at, say, twenty-one days date, and makes all the drafts payable to the customer. The customer then indorses each draft, making it payable to the person to whom he intends to send it.
The following is a specimen of an ordinary after date draft :— Drafts after date take the usual three days of grace, except in the case of bills drawn by the Bank of England upon itself.
By 9 George IV, c. 23, bankers in England, except within the City of London, or within three miles thereof, having first obtained a licence and given security by bond, may issue, on unstamped paper, promissory notes for any sum of money amounting to five pounds or upwards, expressed to be payable to the bearer on demand, or to order, at any period not exceeding seven days after sight ; and bills of exchange payable to order, on demand, or at any period, not exceeding seven days after sight or twenty-one days after date, provided such bills be drawn upon a banker in London, Westminster. or the
borough of Southwark ; or provided such bills be drawn by any banker or bankers at any place where they are licensed to issue bills and notes, upon themselves, payable at any other place where they shall also be duly licensed.
That Section applies only to bankers who are licensed to issue notes and drafts on unstampcd paper. The stamp duty is compounded for at the rate of 3s. 6a. for every 1100 or part of /100 of the half-yearly average amount of notes and drafts in cir culation, based on the amount in circulation on Saturday in every week.
Where a banker is not licensed to issue notes and drafts on unstamped paper, all drafts payable after date, issued by him, must be stamped in the same way as an ord nary bill of exchange. See the stamp duties under BILL OF EXCHANGE. (See DRAFT.)