Convention on International Bills of Exchange and International Promissory Notes
Article 45
(1) Unless otherwise agreed, a person who transfers an instrument, by
endorsement and delivery or by mere delivery, represents to the holder to
whom he transfers the instrument that:
(a) The instrument does not bear any forged or unauthorized
signature;
(b) The instrument has not been materially altered;
(c) At the time of transfer, he has no knowledge of any fact which
would impair the right of the transferee to payment of the
instrument against the acceptor of a bill or, in the case of an
unaccepted bill, the drawer, or against the maker of a note.
(2) Liability of the transferor under paragraph (1) of this article is
incurred only if the transferee took the instrument without knowledge of
the matter giving rise to such liability.
(3) If the transferor is liable under paragraph (1) of this article,
the transferee may recover, even before maturity, the amount paid by him
to the transferor, with interest calculated in accordance with article
70, against return of the instrument.
G. The guarantor
Article 46
(1) Payment of an instrument, whether or not it has been accepted, may
be guaranteed, as to the whole or part of its amount, for the account of
a party or the drawee. A guarantee may be given by any person, who may
or may not already be a party.
(2) A guarantee must be written on the instrument or on a slip affixed
thereto (“allonge”).
(3) A guarantee is expressed by the words “guaranteed”, “aval”, “good
as aval”or words of similar import, accompanied by the signature of the
guarantor. For the purposes of this Convention, the words “prior
endorsements guaranteed”or words of similar import do not consttute a
guarantee.
(4) A guarantee may be effected by a signature alone on the front of
the instrument. A signature alone on the front of the instrument, other
than that of the maker, the drawer or the drawee, is a guarantee.
(5) A guarantor may specify the person for whom he has become
guarantor. In the absence of such specification, the person for whom he
has become guarantor is the acceptor or the drawee in the case of a bill,
and the maker in the case of a note.
(6) A guarantor may not raise as a defence to his liability the fact
that he signed the instrument before it was signed by the person for whom
he is a guarantor, or while the instrument was incomplete.
Article 47
(1) The liability of a guarantor on the instrument is of the same
nature as that of the party for whom he has become guarantor.
(2) If the person for whom he has become guarantor is the drawee, the
guarantor engages:
(a) To pay the bill at maturity to the holder, or to any party who
takes up and pays the bill;
(b) If the bill is payable at a definite time, upon dishonour by
non-acceptance and upon any necessary protest, to pay it to the
holder, or to any party who takes up and pays the bill.
(3) In respect of defences that are personal to himself, a guarantor
may set up:
(a) Against a holder who is not a protected holder only those
defences which he may set up under paragraphs (1), (3) and (4) of
article 28;
(b) Against a protected holder only those defences which he may set
up under paragraph (1) of article 30.
(4) In respect of defences that may be raised by the person for whom he
has become a guarantor:
(a) A guarantor may set up against a holder who is not a protected
holder only those defences which the person for whom he has become
a guarantor may set up against such holder under paragraphs (1),
(3) and (4) of article 28;
(b) A guarantor who expresses his guarantee by the words
“guaranteed”, “payment guaranteed”or “collection guaranteed”, or
words of similar import, may set up against a protected holder only
those defences which the person for whom he has become a guarantor
may set up against a protected holder under paragraph (1) of
article 30;
(c) A guarantor who expresses his guarantee by the words “aval”or
“good as aval”may set up against a protected holder only:
(i) The defence, under subparagraph (b) of paragraph (1) of
article 30, that the protected holder obtained the signature
on the instrument of the person for whom he has become a
guarantor by a fraudulent act;
(ii) The defence, under article 53 or 57, that the instrument was
not presented for acceptance or for payment;
(iii) The defence, under article 63, that the instrument was not
duly protested for non-acceptance or for non-payment;
(iv) The defence, under article 84, that a right of action may no
longer be exercised against the person for whom he has become
guarantor;
(d) A guarantor who is not a bank or other financial institution
and who expresses his guarantee by a signature alone may set up
against a protected holder only the defences referred to in
subparagraph (b) of this paragraph;
(e) A guarantor which is a bank or other financial institution and
which expresses its guarantee by a signature alone may set up
against a protected holder only the defences referred to in
subparagraph (c) of this paragraph.
Article 48
(1) Payment of an instrument by the guarantor in accordance, with
article 72 discharges the party for whom he became guarantor of his
liability on the instrument to the extent of the amount paid.
(2) The guarantor who pays the instrument may recover from the party
for whom he has become guarantor and from the parties who are liable on
it to that party the amount paid and any interest.
CHAPTER V. PRESENTMENT, DISHONOUR BY NON-ACCEPTANCE OR NON-PAYMENT,
AND RECOURSE
Section 1. Presentment for acceptance and dishonour by non-acceptance
Article 49
(1) A bill may be presented for acceptance.
(2) A bill must be presented for acceptance:
(a) If the drawer has stipulated in the bill that it must be
presented for acceptance;
(b) If the bill is payable at a fixed period after sight; or
(c) If the bill is payable elsewhere than at the residence or place
of business of the drawee, unless it is payable on demand.
Article 50
(1) The drawer may stipulate in the bill that it must not be presented
for acceptance before a specified date or before the occurrence of a
specified event. Except where a bill must be presented for acceptance
under subparagraph (b) or (c) of paragraph (2) of article 49, the drawer
may stipulate that it must not be presented for acceptance.
(2) If a bill is presented for acceptance notwithstanding a stipulation
permitted under paragraph (1) of this article and acceptance is refused,
the bill is not thereby dishonoured.
(3) If the drawee accepts a bill notwithstanding a stipulation that it
must not be presented for acceptance, the acceptance is effective.
Article 51
A bill is duly presented for acceptance if it is presented in
accordance with the following rules:
(a) The holder must present the bill to the drawee on a business
day at a reasonable hour;
(b) Presentment for acceptance may be made to a person or authority
other than the drawee if that person or authority is entitled under
the applicable law to accept the bill;
(c) If a bill is payable on a fixed date, presentment for
acceptance must be made before or on that date;
(d) A bill payable on demand or at a fixed period after sight must
be presented for acceptance within one year of its date;
(e) A bill in which the drawer has stated a date or time-limit for
presentment for acceptance must be presented on the stated date or
within the stated time-limit.
Article 52
(1) A necessary or optional presentment for acceptance is dispensed
with if:
(a) The drawee is dead, or no longer has the power freely to deal
with his assets by reason of his insolvency, or is a fictitious
person, or is a person not having capacity to incur liability on
the instrument as an acceptor; or
(b) The drawee is a corporation, partnership, association or other
legal entity which has ceased to exist.
(2) A necessary presentment for acceptance is dispensed with if:
(a) A bill is payable on a fixed date, and presentment for
acceptance cannot be effected before or on that date due to
circumstances which are beyond the control of the holder and which
he could neither avoid nor overcome; or
(b) A bill is payable at a fixed period after sight, and
presentment for acceptance cannot be effected within one year of
its date due to circumstances which are beyond the control of the
holder and which he could neither avoid nor overcome.
(3) Subject to paragraphs (1) and (2) of this article, delay in a
necessary presentment for acceptance is excused, but presentment for
acceptance is not dispensed with, if the bill is drawn with a stipulation
that it must be presented for acceptance within a stated time-limit, and
the delay in presentment for acceptance is caused by circumstances which
are beyond the control of the holder and which he could neither avoid nor
overcome. When the cause of the delay ceases to operate, presentment
must be made with reasonable diligence.
Conclusion
Notes
See Also
References and Further Reading
About the Author/s and Reviewer/s
Author: international
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