Section VII Bank Collection. Bank Documentary Collection

Under a contract for bank collection a bank undertakes, for a fee, to collect by mandate from the principal his cash receivable or to effect another action for collection.

Under a contract for bank documentary collection the bank by mandate from the principal undertakes to deliver, in return for remuneration, to another person documents entitling him to dispose with goods, or other documents against payment of an amount which the bank undertakes to collect, or against effect of other actions for collection.

(1)

The principal should pay to the bank the agreed expenses.

(2)

Upon performance of bank collection and of bank documentary collection the bank shall be liable only for incorrect performance of the instructions provided. It shall not be obliged to verify the form and compliance of documents.

(3)

A bank which uses the services of another bank in view of performing the orders of the principal, shall do so on his account.

Unless the circumstances indicate otherwise the provisions for contract of mandate shall apply mutatis mutandis to the bank collection and the bank documentary collection.

Contracts for bank collection and for bank documentary collection shall not be terminated upon the death of the principal.

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