Convention on International Bills of Exchange and International Promissory Notes 7

Convention on International Bills of Exchange and International Promissory Notes

 

Article 53

(1) If a bill which must be presented for acceptance is not so
presented, the drawer, the endorsers and their guarantors are not liable
on the bill.

(2) Failure to present a bill for acceptance does not discharge the
guarantor of the drawee of liability on the bill.

Article 54

(1) A bill is considered to be dishonoured by non-acceptance:

(a) If the drawee, upon due presentment, expressly refuses to
accept the bill or acceptance cannot be obtained with reasonable
diligence or if the holder cannot obtain the acceptance to which he
is entitled under this Convention;

(b) If presentment for acceptance is dispensed with pursuant to
article 52, unless the bill is in fact accepted.

(2) (a) If a bill is dishonoured by non-acceptance in accordance with
subparagraph (a) of paragraph (1) of this article, the holder may
exercise an immediate right of recourse against the drawer, the endorsers
and their guarantors, subject to the provisions of article 59.

(b) If a bill is dishonoured by non-acceptance in accordance with
subparagraph (b) of paragraph (1) of this article, the holder may
exercise an immediate right of recourse against the drawer, the
endorsers and their guarantors.

(c) If a bill is dishonoured by non-acceptance in accordance with
paragraph (1) of this article, the holder may claim payment from
the guarantor of the drawee upon any necessary protest.

(3) If a bill payable on demand is presented for acceptance, but
acceptance is refused, it is not considered to be dishonoured by
non-acceptance.

Section 2. Presentment for payment and dishonour by non-payment

Article 55

An instrument is duly presented for payment if it is presented in
accordance with the following rules:

(a) The holder must present the instrument to the drawee or to the
acceptor or to the maker on a business day at a reasonable hour;

(b) A note signed by two or more makers may be presented to any one
of them, unless the note clearly indicates otherwise;

(c) If the drawee or the acceptor or the maker is dead, presentment
must be made to the persons who under the applicable law are his
heirs or the persons entitled to administer his estate;

(d) Presentment for payment may be made to a person or authority
other than the drawee, the acceptor or the maker if that person or
authority is entitled under the applicable law to pay the
instrument;

(e) An instrument which is not payable on demand must be presented
for payment on the date of maturity or on one of the two business
days which follow;

(f) An instrument which is payable on demand must be presented for
payment within one year of its date;

(g) An instrument must be presented for payment:

(i) At the place of payment specified on the instrument; or

(ii) If no place of payment is specified, at the address of the
drawee or the acceptor or the maker indicated in the
instrument; or

(iii) If no place of payment is specified and the address of the
drawee or the acceptor or the maker is not indicated, at the
principal place of business or habitual residence of the
drawee or the acceptor or the maker;

(h) An instrument which is presented at a clearing-house is duly
presented for payment if the law of the place where the
clearing-house is located or the rules or customs of that
clearing-house so provide.

Article 56

(1) Delay in making presentment for payment is excused if the delay 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.

(2) Presentment for payment is dispensed with:

(a) If the drawer, an endorser or a guarantor has expressly waived
presentment; such waiver:

(i) If made on the instrument by the drawer, binds any subsequent
party and benefits any holder;

(ii) If made on the instrument by a party other than the drawer,
binds only that party but benefits any holder;

(iii) If made outside the instrument, binds only the party making
it and benefits only a holder in whose favour it was made;

(b) If an instrument is not payable on demand, and the cause of
delay in making presentment referred to in paragraph (1) of this
article continues to operate beyond 30 days after maturity;

(c) If an instrument is payable on demand, and the cause of delay
in making presentment referred to in paragraph (1) of this article
continues to operate beyond 30 days after the expiration of the
time-limit for presentment for payment;

(d) If the drawee, the maker or the acceptor has no longer the
power freely to deal with his assets by reason of his insolvency,
or is a fictitious person or a person not having capacity to make
payment, or if the drawee, the maker or the acceptor is a
corporation, partnership, association or other legal entity which
has ceased to exist;

(e) If there is no place at which the instrument must be presented
in accordance with subparagraph (g) of article 55.

(3) Presentment for payment is also dispensed with as regards a bill,
if the bill has been protested for dishonour by non-acceptance.

Article 57

(1) If an instrument is not duly presented for payment, the drawer, the
endorsers and their guarantors are not liable on it.

(2) Failure to present an instrument for payment does not discharge the
acceptor, the maker and their guarantors or the guarantor of the drawee
of liability on it.

Article 58

(1) An instrument is considered to be dishonoured by non-payment:

(a) If payment is refused upon due presentment or if the holder
cannot obtain the payment to which he is entitled under this
Convention;

(b) If presentment for payment is dispensed with pursuant to
paragraph (2) of article 56 and the instrument is unpaid at
maturity.

(2) If a bill is dishonoured by non-payment, the holder may, subject to
the provisions of article 59, exercise a right of recourse against the
drawer, the endorsers and their guarantors.

(3) If a note is dishonoured by non-payment, the holder may, subject to
the provisions of article 59, exercise a right of recourse against the
endorsers and their guarantors.

Section 3. Recourse

Article 59

If an instrument is dishonoured by non-acceptance or by non-payment,
the holder may exercise a right of recourse only after the instrument has
been duly protested for dishonour in accordance with the provisions of
articles 60 to 62.

A. Protest

Article 60

(1) A protest is a statement of dishonour drawn up at the place where
the instrument has been dishonoured and signed and dated by a person
authorized in that respect by the law of that place. The statement must
specify:

(a) The person at whose request the instrument is protested;

(b) The place of protest; and

(c) The demand made and the answer given, if any, or the fact that
the drawee or the acceptor or the maker could not be found.

(2) A protest may be made:

(a) On the instrument or on a slip affixed thereto (“allonge”); or

(b) As a separate document, in which case it must clearly identify
the instrument that has been dishonoured.

(3) Unless the instrument stipulates that protest must be made, a
protest may be replaced by a declaration written on the instrument and
signed and dated by the drawee or the acceptor or the maker, or, in the
case of an instrument domiciled with a named person for payment, by that
named person; the declaration must be to the effect that acceptance or
payment is refused.

(4) A declaration made in accordance with paragraph (3) of this article
is a protest for the purpose of this Convention.

 

Conclusion

Notes

See Also

References and Further Reading

About the Author/s and Reviewer/s

Author: international

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