LAW OF OBLIGATION ACT, PART 9, CHAPTER 47, DIVISION 5

Division 5

Payment of Bill of Exchange 

  • 958. Presentment for payment

(1) A bill of exchange payable on a fixed day, a bill of exchange payable at a fixed period after date and a bill of exchange payable at a fixed period after sight shall be presented for payment either at maturity or during the two following working days.

(2) The presentment of a bill of exchange for offsetting to a person with the right to perform such offsetting as the economic activities of the person is deemed to be equivalent to presentment for payment.

  • 959. Giving up and partial payment of bill of exchange

(1) Upon payment of a bill of exchange, the drawee may require the holder to give up the bill and issue a receipt for payment.

(2) The holder of a bill of exchange shall not refuse partial payment. In the case of partial payment of a bill of exchange, the drawee may require the holder to make a notice of partial payment on the bill and issue a receipt for the payment.

  • 960. Consequences of payment

(1) Upon payment of a bill of exchange at maturity, the drawee’s obligation to pay terminates.

(2) The holder of a bill of exchange is not required to accept payment of the bill before maturity. A drawee who pays the bill of exchange before maturity is not thereby released from the obligations arising from the bill.

(3) A drawee is not released from the obligation to pay if the drawee pays the bill of exchange intentionally or through gross negligence for the benefit of a person who is not entitled to accept the performance. Upon payment, the drawee is required to verify the uninterrupted series of endorsements but not the authenticity of the signatures of the endorsers.

  • 961. Deposit

If a bill of exchange is not presented for payment within the term specified in § 958 of this Act, a party to the bill may deposit the amount of the bill at the charge and risk of the holder pursuant to the procedure provided for in § 120 of this Act.

Division 6

Protest of Bill of Exchange 

  • 962. Definition of protest of bill of exchange

(1) Protest of a bill of exchange is verification, by a public document (protest) issued by a notary or another person so entitled by law, of a proposal for acceptance or payment which has been made to the drawee but which the drawee has failed to perform.

(2) Protest for refusal to accept or pay a bill of exchange is the precondition for filing a claim specified in § 970 of this Act, unless otherwise provided by law or specified by the drawer.

(3) A bill of exchange protested for non-acceptance need not be presented for payment or protested for non-payment.

  • 963. Release from protest

(1) If a drawer, an endorser or an avaliseur has made a stipulation ” kuludeta regress ” [ retour sans frais ] or ” protestita ” [ sans protet ] or any other equivalent expression on the bill of exchange, the holder of the bill need not protest the bill upon non-acceptance or non-payment in order to file a claim specified in § 970 of this Act.

(2) If the stipulation specified in subsection (1) of this section is written by the drawer, the stipulation applies to all parties to the bill of exchange; if it is written by an endorser or an avaliseur, the stipulation applies only to the endorser or the avaliseur.

(3) If the holder of a bill of exchange protests the bill regardless of a stipulation indicating release from protest written by the drawer, the holder shall bear the expenses relating to the protest. If the stipulation was made by an endorser or an avaliseur, the expenses relating to the protest shall be recovered from all the parties to the bill of exchange jointly and severally.

  • 964. Terms for protests

(1) A protest for non-acceptance of a bill of exchange shall be drawn up within the term for presentment for acceptance specified in § 952 of this Act.

(2) A protest for non-payment of a bill of exchange shall be drawn up within two working days after maturity. A protest for non-payment of a bill of exchange at sight shall be drawn up within the term for presentment for payment specified in § 930 of this Act.

  • 965. Content of protest

The official who draws up a protest shall set out the following information in the protest:

1) the names of the persons in whose interests and against whom the protest is drawn up;

2) a notice indicating that performance of the obligations arising from the bill of exchange has been claimed from the person against whom the protest is filed but the person has failed to perform the obligations or his or her whereabouts cannot be ascertained;

3) information indicating where and when the claim specified in clause 2) of this section was submitted or submission was attempted without result;

4) a notice concerning partial payment if the bill of exchange has been paid in part.

  • 966. Form of protest

(1) A protest shall be written either on the bill or on an allonge.

(2) A protest shall immediately follow the last entry on the back of the bill of exchange or on the allonge or, in the absence of previous entries, shall begin at one edge of the back of the bill of exchange or the allonge.

(3) If a protest is drawn up against a bill of exchange issued in parts, it is sufficient to write the protest on one of the parts. The other parts or a copy of the bill of exchange shall contain a notice indicating the part on which the protest is written. The provisions of subsection (2) of this section apply to such notice, mutatis mutandis.

(4) If a bill of exchange is protested due to partial acceptance, a copy shall be made of the bill and the protest shall be written on the copy or on the allonge of the copy. The copy shall also contain the endorsements and other notices written on the bill of exchange.

  • 967. Protest filed against several persons or repeatedly against same person

If one and the same obligation arising from a bill of exchange is to be performed by several persons or repeatedly by one and the same person, it is sufficient to draw up one protest.

  • 968. Payment of bill of exchange to person drawing up protest

(1) A bill of exchange may be paid by depositing the amount of the bill with the official who draws up the protest.

(2) Any preclusion of the right to pay a bill of exchange in the manner specified in subsection (1) of this section is void.

  • 969. Copies of protest

(1) The official who draws up a protest shall have a notarially authenticated copy of the protest made and shall preserve it.

(2) In the event of the loss or destruction of a protest, a copy specified in subsection (1) of this section shall serve as the protest.

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