APPLICABLE LAW ON BILL OF EXCHANGE, PROMISSORY NOTE AND CHEQUE

(1)

The capacity of a person to undertake obligations under a bill of exchange, a promissory note or a cheque, shall be determined by its national law. Where this law declares the law of another country to be applicable law, the law of that country shall apply.

(2)

A person who does not possess the capacity referred to in paragraph 1, shall be considered liable if his signature has been put in a country the law of which recognizes him as capable person.

(1)

The form and contents of a bill of exchange, a promissory note and a cheque shall be determined pursuant to the law of the place of their signature. For a cheque the observance of the form and contents pursuant to the law of the place of payment shall be sufficient.

(2)

Where a bill of exchange, a promissory note or a cheque are not valid, but are in compliance with the law of the country where a subsequent obligation has been undertaken, they shall be valid.

(1)

The obligation of the drawee under a bill of exchange and of the drawer of a promissory note shall be determined by the law of the place of payment.

(2)

The obligation of the other persons who have signed shall be determined by the law of the place where the signatures have been put.

The time periods for recourse for persons who have signed shall be determined by the law of the place of issue of the document.

The law of the place of issue of a bill of exchange or a promissory note shall determine whether the bearer acquires the receivable in view of which they have been issued.

The right of the drawee to effect partial acceptance of a bill of exchange or a promissory note and the obligation of the bearer to accept partial payment shall be determined by the law of the place of payment.

The form and terms for protest, as well as of other acts necessary for the exercise or retaining of rights under a bill of exchange, a promissory note and a cheque, shall be determined by the law of the place where the respective acts must be undertaken.

The acts that must be undertaken in the case of loss or theft of a bill of exchange, a promissory note or a cheque, shall be determined by the law of the place of payment.

Persons on whom a cheque may be drawn shall be determined by the law of the place of payment. Where pursuant to that law a cheque is not valid in view of the capacity of the person on whom it has been drawn, the obligations ensuing from signatures put in other countries, the laws of which contain such provisions, shall be valid.

Determined pursuant to the law of the place of payment of a cheque shall be:

1.

whether it should be issued to presentation, or it could also be within a certain term after presentation, as well as what shall be the consequences of presentation on a later date;

2.

time limit for presentation;

3.

the possibility a cheque to be accepted, confirmed or advised, as well as the effect of such notes;

4.

the possibility a cheque to be crossed or with provision "account payee" or another phrase of equivalent meaning, and the consequences thereof;

5.

the right of the drawer to cancel a cheque or to object to its payment.

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