Question 179. - Are there three days of grace on a lien note, (a) when left for collection or as collateral security; (b) when discounted. If a lien note is discounted, does it require a stamp? Can a lien note be protested if three days of grace are added?

Answer.-(a) No. ,(b) No.

The following ruling was given by the Finance Department over a year ago:

"We think it may be said generally of these lien notes that they begin with this language, 'on or before the...... day ...... I promise,' etc. In addition there are several contingencies provided for in these instruments which may or may not happen. If any one of these contingencies does come to pass, the amount of the instrument becomes immediately due.

"It may, therefore, be said that instruments embodying these conditions are not payable on demand or at a determinable future time and in consequence are not negotiable paper. These instruments, therefore, are not promissory notes within the meaning of the Act, and as such need not be stamped."

As the ordinary lien note is not a note within the meaning of the Bills of Exchange Act, protest is unnecessary.