Section VIII Recourse Actions

(1)

Where a bill of exchange has not been paid on maturity, the bearer may bring recourse actions against the endorsers, the drawer and the other liable persons.

(2)

additionally recourse actions may be brought before maturity, provided:

1.

the drawee rejects acceptance of the bill of exchange, entirely or in part;

2.

bankruptcy proceedings have been instigated against the drawee, notwithstanding whether he has accepted the bill of exchange or not;

3.

the drawee has discontinued his payments or the compulsory execution on his property has provided no result;

4.

bankruptcy proceedings have been instigated against the drawer of the bill of exchange whose acceptance was refused.

(1)

The bearer shall be entitled to claim from the persons against whom he has brought the recourse action:

1.

the sum under the bill of exchange which has not been accepted or has not been paid, together with interest if so agreed;

2.

interest due by operation of law as from maturity date;

3.

expenses related to the protest, the notifications made and other expenses;

4.

commission which, unless otherwise agreed, shall amount to one third of one percent of the sum under the bill of exchange, and which may not exceed that amount.

(2)

Where the recourse action has been brought before maturity, the interest from the date of bringing the recourse action to maturity to the amount of the official discount rate of the central bank at the place of residence of the bearer shall be deducted from the sum of the bill of exchange.

A person who has paid the bill of exchange may claim from the persons obliged before him:

1.

the amount he has paid;

2.

interest due by operation of law on the amount paid as from the date of payment;

3.

the costs incurred;

4.

commission pursuant to Article 506, paragraph 1, item 4.

(1)

Each of the persons liable under the bill of exchange, against whom a recourse action has been brought or may be brought, shall be entitled to request that upon payment the bill of exchange be delivered to him together with the protest, and that a receipt be issued.

(2)

Each endorser who has paid the bill of exchange may cross out his endorsement and the endorsements of the subsequent endorsers.

If a recourse action has been brought after partial acceptance, the person who has paid the amount for which the bill of exchange has not been accepted, may request the payment made to be noted on the bill and a receipt to be issued to him. The bearer must also deliver to him a certified transcript of the bill of exchange and the protest, so that the person who has paid may bring subsequent recourse actions.

If a drawee has discontinued his payments, notwithstanding whether he has accepted the bill of exchange, as well as if a compulsory execution against him proves without result, the bearer shall be entitled to bring a recourse action after presentation of the bill of exchange for payment to the drawer and after making a protest.

(1)

If bankruptcy proceedings have been instigated against the drawee, notwithstanding whether he has accepted the bill of exchange, as well as in cases of instigated bankruptcy proceedings against the drawer of a bill of exchange which is not subject to acceptance, the decision for instigating bankruptcy proceedings shall be sufficient grounds for the bearer to bring his recourse action.

(2)

If bankruptcy proceedings have been instigated against a drawee, notwithstanding whether he has accepted the bill of exchange, or against the drawer of the bill of exchange whose acceptance has been refused, a court decision shall be required additionally.

(1)

Whoever is entitled to a recourse action may exercise it by issuing against some of the persons liable before him a new bill of exchange (recourse bill of exchange), which shall be a sight bill of exchange and shall be payable at the place of residence of that person, unless otherwise agreed.

(2)

The recourse bill of exchange shall cover further to the amounts under Articles 506 and 507 also other expenses.

(3)

Where the recourse bill of exchange has been issued to bearer, the amount shall be determined according to the rate of the sight bill of exchange issued at the place of payment of the initial bill of exchange, and payable at the place of residence of the preceding endorser.

(4)

If the recourse bill of exchange has been issued by an endorser, its sum shall be determined according to the rate of the sight bill of exchange, issued at the place of residence of the drawer of the recourse bill of exchange, and payable at the place of residence of the preceding endorser.

(1)

The persons who have issued, accepted and endorsed the bill of exchange, or who have provided a guarantee, shall be liable jointly and severally before the bearer.

(2)

The bearer may bring his actions against all persons liable under the bill of exchange, jointly or severally, without taking in consideration the order in which they have become liable. Entitled to the same right shall be any liable person who has paid the bill of exchange, in respect of persons who have become liable before him.

(3)

The bearer who has brought an action against one of the debtors under the bill of exchange, shall not forfeit his rights against the other debtors, including those who have signed after the one against whom he has brought the action.

(1)

The bearer shall forfeit his rights against the endorsers, the drawer and the other liable persons, with the exception of the drawee, if he misses the terms:

1.

for presentation of the sight bill of exchange or the usance bill of exchange;

2.

for making a protest due to default on acceptance or on payment;

3.

for presentation for payment under a "sans frais" provision.

(2)

If the bearer misses the term specified by the drawer for presentation of the bill of exchange for acceptance, he shall forfeit his right to recourse for default on acceptance and on payment, unless it ensues from the contents of the bill of exchange that the drawer wanted to exclude only the liability for acceptance.

(3)

Where the provision with a term for presentation is included in an endorsement, only the endorser may refer to it.

(1)

Where the presentation of the bill of exchange or the lodging of a protest within the specified time periods are prevented by force majeure, the time periods shall be extended, respectively.

(2)

The bearer shall be obliged to notify forthwith his immediate endorser of the force majeure, and to note that notification on the bill of exchange or the allonge, indicating the place, date and signing thereunder, as well as to meet his obligations pursuant to Article 499.

(3)

After termination of the force majeure, the bearer must immediately present the bill of exchange for acceptance or payment, and lodge a protest, if necessary.

(4)

If the force majeure continues for more than thirty days after maturity, a recourse action may be brought without need for presentation or protest.

(5)

For a sight bill of exchange or a usance bill of exchange, the thirty day period shall commence from the date on which the bearer has informed his immediate endorser. This notification may be effected before expiration of the period for presentation. In the case of a usance bill of exchange, the thirty day time period shall be extended by the time period specified in the bill of exchange after presentation.

(6)

Circumstances relevant to the person of the bearer, or to the person to whom he has assigned the presentation of the bill of exchange or the effecting of the protest, shall not be deemed force majeure.

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