Section VII Protest

A refusal of acceptance or payment must be ascertained by protest due to default on acceptance or default on payment.

(1)

A protest due to default on acceptance must be made within the terms specified for presentation for acceptance. If in the case stipulated under Article 478, paragraph 1, the first presentation has been effected on the last date of the term, the protest may be effected on the next date.

(2)

The protest on default of acceptance shall relieve the bearer from presentation of the bill of exchange for payment, and also from protest due to default on payment.

A protest to default on payment of a bill of exchange payable on a certain date or within a certain term after the issue or after the presentation, must be made on one of the two business days after the date specified for payment. If the bill of exchange is payable upon presentation, the protest must be made within the terms under Article 497, paragraph (1).

(1)

The bearer should notify his immediate endorser and the drawer for the default on acceptance and the default on payment within four business days following the date of protest, and in the case of provision "sans frais" - after the date of presentation. Each endorser shall be obliged within two business days following the date of receipt of notification to notify his immediate endorser thereof, indicating the names and addresses of those who have made the preceding notifications, up to the drawer. Time periods shall run from the date of receipt of the preceding notification.

(2)

Where pursuant to paragraph 1 notification was made to a person who signed the bill of exchange, it must be made within the same term also to his guarantor.

(3)

Where an endorser has not indicated his address or has done so illegibly, the notification must be made to the endorser preceding him.

(4)

A notification may also be effected by return of the bill of exchange. The person obliged to make notification must prove that he has done so within the specified term.

(5)

A person who fails to make the notification within the time periods specified in paragraphs 1 - 4, shall be liable for damages to the amount of the sum under the bill of exchange.

(1)

The drawer, as well as any endorser or guarantor through a provision "sans frais", "sans protest" or a phrase of equivalent meaning signed on the bill of exchange, may relieve the bearer from making a protest to default on acceptance or default on payment, in order to lodge his recourse actions.

(2)

The provision of paragraph 1 shall not relieve the bearer from the obligation to present the bill of exchange in due time and to make the relevant notifications. The burden of proof that the above time periods have not been observed shall be on the person referring to such a circumstance.

(3)

The provision stipulated by the drawer shall have effect in respect of all persons who have signed the bill of exchange. A provision written by an endorser or a guarantor shall have effect only in respect of himself. Where despite the provision written by the drawer the bearer lodges a protest, the expenses shall be on his account, and where the provision has been written by an endorser or a guarantor, all persons who have signed shall be liable for the expenses.

A protest shall be made upon a request in writing from the bearer by the notary public at the place of payment or acceptance.

(1)

A protest shall contain:

1.

a full transcript of the document with all endorsements and notes;

2.

the names of the persons in favour of whom and against whom the protest is being made;

3.

the inquiry to the person against whom the protest is made, the response given or a note that the person has not responded or could not be found;

4.

in the case of acceptance or payment through an intermediary - indication of by whom, for whom and how it has been given;

5.

place and date of the protest;

6.

signature and stamp of the notary public.

(2)

The making of the protest shall be indicated on the document.

Where acceptance or payment of a bill of exchange, a promissory note or a cheque are to be requested from several persons, one protest against all persons may be made.

(1)

The notary public must enter in the register the contents of the protest thus made and issue transcripts to the interested parties.

(2)

The original of the protest shall be delivered to the bearer.

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