Convention on International Bills of Exchange and International Promissory Notes
Article 61
Protest for dishonour of an instrument by non-acceptance or by
non-payment must be made on the day on which the instrument is
dishonoured or on one of the four business days which follow.
Article 62
(1) Delay in protesting an instrument for dishonour 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, protest must be made with reasonable
diligence.
(2) Protest for dishonour by non-acceptance or by non-payment is
dispensed with:
(a) If the drawer, an endorser or a guarantor has expressly waived
protest; 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 the cause of the delay in making protest referred to in
paragraph (1) of this article continues to operate beyond 30 days
after the date of dishonour;
(c) As regards the drawer of a bill, if the drawer and the drawee
or the acceptor are the same person;
(d) If presentment for acceptance or for payment is dispensed with
in accordance with article 52 or paragraph (2) of article 56.
Article 63
(1) If an instrument which must be protested for non-acceptance or for
non-payment is not duly protested, the drawer, the endorsers and their
guarantors are not liable on it.
(2) Failure to protest an instrument does not discharge the acceptor,
the maker and their guarantors or the guarantor of the drawee of
liability on it.
B. Notice of dishonour
Article 64
(1) The holder, upon dishonour of an instrument by non-acceptance or by
non-payment, must give notice of such dishonour:
(a) To the drawer and the last endorser, and
(b) To all other endorsers and guarantors whose addresses the
holder can ascertain on the basis of information contained in the
instrument.
(2) An endorser or a guarantor who receives notice must give notice of
dishonour to the last party preceding him and liable on the instrument.
(3) Notice of dishonour operates for the benefit of any party who has a
right of recourse on the instrument against the party notified.
Article 65
(1) Notice of dishonour may be given in any form whatever and in any
terms which identify the instrument and state that it has been
dishonoured. The return of the dishonoured instrument is sufficient
notice, provided it is accompanied by a statement indicating that it has
been dishonoured.
(2) Notice of dishonour is duly given if it is communicated or sent to
the party to be notified by means appropriate in the circumstances,
whether or not it is received by that party.
(3) The burden of proving that notice has been duly given rests upon
the person who is required to give such notice.
Article 66
Notice of dishonour must be given within the two business days which
follow:
(a) The day of protest or, if protest is dispensed with, the day of
dishonour; or
(b) The day of receipt of notice of dishonour.
Article 67
(1) Delay in giving notice of dishonour is excused if the delay is
caused by circumstances which are beyond the control of the person
required to give notice, and which he could neither avoid nor overcome.
When the cause of the delay ceases to operate, notice must be given with
reasonable diligence.
(2) Notice of dishonour is dispensed with:
(a) If, after the exercise of reasonable diligence, notice cannot
be given;
(b) If the drawer, an endorser or a guarantor has expressly waived
notice of dishonour; 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;
(c) As regards the drawer of the bill, if the drawer and the drawee
or the acceptor are the same person.
Article 68
If a person who is required to give notice of dishonour fails to give
it to a party who is entitled to receive it, he is liable for any damages
which that party may suffer from such failure, provided that such damages
do not exceed the amount referred to in article 70 or 71.
Section 4. Amount payable
Article 69
(1) The holder may exercise his rights on the instrument against any
one party, or several or all parties, liable on it and is not obliged to
observe the order in which the parties have become bound. Any party who
takes up and pays the instrument may exercise his rights in the same
manner against parties liable to him.
(2) Proceedings against a party do not preclude proceedings against any
other party, whether or not subsequent to the party originally proceeded
against.
Article 70
(1) The holder may recover from any party liable:
(a) At maturity: the amount of the instrument with interest, if
interest has been stipulated for;
(b) After maturity:
(i) The amount of the instrument with interest, if interest has
been stipulated for, to the date of maturity;
(ii) If interest has been stipulated to be paid after maturity,
interest at the rate stipulated, or, in the absence of such
stipulation, interest at the rate specified in paragraph (2)
of this article, calculated from the date of presentment on
the sum specified in subparagraph (b) (i) of this paragraph;
(iii) Any expenses of protest and of the notices given by him;
(c) Before maturity:
(i) The amount of the instrument with interest, if interest has
been stipulated for, to the date of payment; or, if no
interest has been stipulated for, subject to a discount from
the date of payment to the date of maturity, calculated in
accordance with paragraph (4) of this article;
(ii) Any expenses of protest and of the notices given by him.
(2) The rate of interest shall be the rate that would be recoverable in
legal proceedings taken in the jurisdiction where the instrument is
payable.
(3) Nothing in paragraph (2) of this article prevents a court from
awarding damages or compensation for additional loss caused to the holder
by reason of delay in payment.
(4) The discount shall be at the official rate (discount rate) or other
similar appropriate rate effective on the date when recourse is exercised
at the place where the holder has his principal place of business, or, if
he does not have a place of business his habitual residence, or, if there
is no such rate, then at such rate as is reasonable in the circumstances.
Conclusion
Notes
See Also
References and Further Reading
About the Author/s and Reviewer/s
Author: international
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