32(1)The following section shall be inserted after section 19 of the 1994 Act—
“19APayment for licences by cheque.
(1)The Secretary of State may, if he thinks fit, issue a vehicle licence or a trade licence on receipt of a cheque for the amount of the duty payable on it.
(2)In a case where—
(a)a vehicle licence or a trade licence is issued to a person on receipt of a cheque which is subsequently dishonoured, and
(b)the Secretary of State sends a notice by post to the person informing him that the licence is void as from the time when it was granted,
the licence shall be void as from the time when it was granted.
(3)In a case where—
(a)a vehicle licence or a trade licence is issued to a person on receipt of a cheque which is subsequently dishonoured,
(b)the Secretary of State sends a notice by post to the person requiring him to secure that the duty payable on the licence is paid within such reasonable period as is specified in the notice,
(c)the requirement in the notice is not complied with, and
(d)the Secretary of State sends a further notice by post to the person informing him that the licence is void as from the time when it was granted,
the licence shall be void as from the time when it was granted.
(4)Section 102 of the [1979 c. 2.] Customs and Excise Management Act 1979 (payment for excise licences by cheque) shall not apply in relation to a vehicle licence or a trade licence.”
(2)The following section shall be inserted after section 35 of the 1994 Act—
“35ADishonoured cheques.
(1)In a case where—
(a)a notice sent as mentioned in section 19A(2)(b) or a further notice sent as mentioned in section 19A(3)(d) requires the person to deliver up the licence within such reasonable period as is specified in the notice, and
(b)the person fails to comply with the requirement within that period,
he shall be liable on summary conviction to a penalty of an amount found under subsection (2).
(2)The amount is whichever is the greater of—
(a)level 3 on the standard scale;
(b)an amount equal to five times the annual rate of duty that was payable on the grant of the licence or would have been so payable if it had been taken out for a period of twelve months.”
(3)In section 36 of the 1994 Act (dishonoured cheques: additional liability) in subsection (1) for the words from “102” to “cheque)” there shall be substituted “35A”.
(4)This paragraph shall apply in relation to licences taken out after the day on which this Act is passed.