Convention on International Bills of Exchange and International Promissory Notes

Article 76

(1) Nothing in this Convention prevents a Contracting State from
enforcing exchange control regulations applicable in its territory and
its provisions relating to the protection of its currency, including
regulations which it is bound to apply by virtue of international
agreements to which it is a party.

(2) (a) If, by virtue of the application of paragraph (1) of this
article, an instrument drawn in a currency which is not that of the place
of payment must be paid in local currency, the amount payable is to be
calculated according to the rate of exchange for sight drafts (or, if
there is no such rate, according to the appropriate established rate of
exchange) on the date of presentment ruling at the place where the
instrument must be presented for payment in accordance with subparagraph
(g) of article 55.

(b) (i) If such an instrument is dishonoured by non-acceptance,
the amount payable is to be calculated, at the option of the
holder, at the rate of exchange ruling on the date of
dishonour or on the date of actual payment.

(ii) If such an instrument is dishonoured by non-payment, the
amount is to be calculated, at the option of the holder,
according to the rate of exchange ruling on the date of
presentment or on the date of actual payment.

(iii) Paragraphs (4) and (5) of article 75 are applicable where
appropriate.

Section 2. Discharge of other parties

Article 77

(1) If a party is discharged in whole or in part of his liability on
the instrument, any party who has a right on the instrument against him
is discharged to the same extent.

(2) Payment by the drawee of the whole or a part of the amount of a
bill to the holder, or to any party who takes up and pays the bill,
discharges all parties of their liability to the same extent, except
where the drawee pays a holder who is not a protected holder, or a party
who has taken up and paid the bill, and knows at the time of payment that
the holder or that party acquired the bill by theft or forged the
signature of the payee or an endorsee, or participated in the theft or
the forgery.

CHAPTER VII. LOST INSTRUMENTS

Article 78

(1) If an instrument is lost, whether by destruction, theft or
otherwise, the person who lost the instrument has, subject to the
provisions of paragraph (2) of this article, the same right to payment
which he would have had if he had been in possession of the instrument.
The party from whom payment is claimed cannot set up as a defence against
liability on the instrument the fact that the person claiming payment is
not in possession of the instrument.

(2) (a) The person claiming payment of a lost instrument must state in
writing to the party from whom he claims payment:

(i) The elements of the lost instrument pertaining to the
requirements set forth in paragraph (1) or (2) of articles 1,
2 and 3; for this purpose the person claiming payment of the
lost instrument may present to that party a copy of that
instrument;

(ii) The facts showing that, if he had been in possession of the
instrument, he would have had a right to payment from the
party from whom payment is claimed;

(iii) The facts which prevent production of the instrument.

(b) The party from whom payment of a lost instrument is claimed may
require the person claiming payment to give security in order to
indemnify him for any loss which he may suffer by reason of the
subsequent payment of the lost instrument.

(c) The nature of the security and its terms are to be determined
by agreement between the person claiming payment and the party from
whom payment is claimed. Failing such an agreement, the court may
determine whether security is called for and, if so, the nature of
the security and its terms.

(d) If the security cannot be given, the court may order the party
from whom payment is claimed to deposit the sum of the lost
instrument, and any interest and expenses which may be claimed
under article 70 or 71, with the court or any other competent
authority or institution, and may determine the duration of such
deposit. Such deposit is to be considered as payment to the person
claiming payment.

Article 79

(1) A party who has paid a lost instrument and to whom the instrument
is subsequently presented for payment by another person must give notice
of such presentment to the person whom he paid.

(2) Such notice must be given on the day the instrument is presented or
on one of the two business days which follow and must state the name of
the person presenting the instrument and the date and place of
presentment.

(3) Failure to give notice renders the party who has paid the lost
instrument liable for any damages which the person whom he paid may
suffer from such failure, provided that the damages do not exceed the
amount referred to in article 70 or 71.

(4) Delay in gving notice is excused when the delay is caused by
circumstances which are beyond the control of the peson who has paid the
lost instrument and which he could neither avoid nor overcome. When the
cause of the delay ceases to operate, notice must be given with
reasonable diligence.

(5) Notice is dispensed with when the cause of delay in giving notice
continues to operate beyond 30 days after the last day on which it should
have been given.

Article 80

(1) A party who has paid a lost instrument in accordance with the
provisions of article 78 and who is subsequently required to, and does,
pay the instrument, or who, by reason of the loss of the instrument, then
loses his right to recover from any party liable to him, has the right:

(a) If security was given, to realize the security; or

(b) If an amount was deposited with the court or other competent
authority or institution, to reclaim the amount so deposited.

(2) The person who has given security in accordance with the provisions
of subparagraph (b) of paragraph (2) of article 78 is entitled to obtain
release of the security when the party for whose benefit the security was
given is no longer at risk to suffer loss because of the fact that the
instrument is lost.

Author: international

Mentioned in these Entries

Convention on International Bills of Exchange and International Promissory Notes.