Division 3
Aval
- 948. Aval
(1) The obligation of a party to a bill of exchange to pay the bill may be guaranteed by an aval as to the whole or part of its amount. An aval may also be given by a person who has already signed the bill.
(2) An aval is given either on the bill or on an allonge. An aval is expressed by the words ” käendan ” [good as aval] or by any other equivalent expression signed by the avaliseur.
(3) A separate signature on the face of a bill of exchange is deemed to be an aval by the signatory unless the signatory is the drawee or the drawer of the bill.
(4) If an aval does not specify the person for whose account it is given, the aval is deemed to be given for the drawer.
- 949. Liability of avaliseur
(1) The avaliseur and the person for whose account the aval is given shall be jointly and severally liable.
(2) The avaliseur shall be liable also if the obligation which is guaranteed by the aval is void for any reason other than defect of form of the bill or the endorsement.
(3) The avaliseur who pays the bill of exchange shall acquire all rights arising out of the bill against the person guaranteed and against all persons who pursuant to the bill are liable to the avaliseur.
Division 4
Acceptance of Draft
- 950. Presentment for acceptance
(1) A draft may be presented to the drawee for acceptance until maturity. A draft may be presented for acceptance by the holder or possessor of the draft or by the person who exercises actual control over the draft in the household or enterprise of the holder according to the orders thereof.
(2) A draft shall be presented for acceptance at the place of business of the drawee or, in the absence of a place of business, at the residence or seat of the drawee.
- 951. Legal consequences of acceptance
(1) By accepting a draft, the drawee undertakes to pay the draft at the maturity of the draft.
(2) If an acceptor fails to pay the draft at the maturity thereof, the holder of the draft, even if the holder is the drawer, may file a claim on the draft against the acceptor to the extent provided for in subsection 970 (1) or § 974 of this Act.
- 952. Term for presentment for acceptance
(1) A draft payable at a fixed period after sight shall be presented for acceptance within one year as of the date of issue of the draft unless the drawer has specified a different term in the draft. An endorser may abridge the term for presentment for acceptance provided by law or specified by the drawer of the draft.
(2) The drawer of a draft other than a draft payable at a fixed period after sight may prescribe in the draft that it must be presented for acceptance and specify the term for presentment.
(3) Unless the drawer of a bill of exchange has prohibited presentment for acceptance, each endorser may prescribe that the bill must be presented for acceptance and specify the term for presentment.
- 953. Prohibition on presentment for acceptance
(1) The drawer of a draft may prohibit presentment for acceptance, except in the case of a draft payable at a fixed period after sight or a bill of exchange payable in a locality other than the place of business, residence or seat of the drawee.
(2) The drawer of a bill of exchange may prescribe in the bill that it must not be presented for acceptance before a specified date.
- 954. Form of acceptance
(1) An acceptance shall be indicated on a draft with the word ” aktseptitud ” [accepted] or any other equivalent expression and shall be signed by the drawee. The simple signature of the drawee on the face of the draft is also deemed to be an acceptance.
(2) In the case of a draft payable at a fixed period after sight or any other draft which must be presented for acceptance within the term specified in the draft, the acceptance shall be dated as of the date the acceptance is given. If the holder of the draft requires that the date of presentment for acceptance be indicated, the date on which the draft is presented for acceptance shall also be indicated in the acceptance.
(3) If, in the cases specified in subsection (2) of this section, an acceptance does not contain a date, the holder of the draft shall, within the term provided for in § 964 of this Act, protest the failure to indicate the date. Upon failure to submit a protest, the holder loses the right of claim specified in § 970 of this Act against the endorsers and the drawer.
- 955. Restrictions on acceptance
(1) An acceptance shall be unconditional but the drawee may expressly stipulate in the acceptance that the drawee accepts only a part of the amount of the bill, indicating the accepted amount.
(2) If an acceptance contains a clear modification to the tenor of the bill regarding anything other than the amount payable, such derogation is deemed to be a refusal to accept. Nevertheless, the acceptor shall be liable according to the terms of the acceptance.
- 956. Place of payment other than place of business, residence or seat of drawee
(1) If a drawer indicates in a draft a place of payment other than the place of business, residence or seat of the drawee without specifying the third party at whose address payment must be made, the drawee may indicate such third party in the acceptance. In the absence of such indication, the acceptor is deemed to have undertaken to pay the draft at the place of payment.
(2) Upon acceptance of a draft payable at the place of business, residence or seat of the drawee, the drawee may indicate a more exact address in the place of payment where payment is to be made.
- 957. Cancellation of acceptance
(1) The drawee of a bill of exchange is deemed to have refused acceptance if the drawee cancels the acceptance before restoring the bill to the person presenting the bill for acceptance. Cancellation of the acceptance is presumed to have taken place before the bill was restored.
(2) Regardless of the provisions of subsection (1) of this section, the drawee of a bill of exchange shall be liable according to the terms of the acceptance to the holder and to the other parties to the bill to whom the drawee has given written notice of accepting the bill.