Wednesday, August 26, 2020

COMMERCIAL CODE - BOOK IV NEGOTIABLE INSTRUMENTS AND BANKING TRANSACTIONS-TITLE II. COMMERCIAL INSTRUMENTS-Chapter 3. Promissory Notes

 Chapter 3. Promissory Notes

Art. 823. – Requirements.
A promissory note shall contain:
a.    the term “promissory note” inserted in the body of the instrument  and expressed in the language employed in drawing up the instrument ;
b.    an un conditional promise to pay a sum certain in money;
c.    the, time of payment;
d.    the place of payment;
e.    the name of the person, to whom or to !Whose order payment is to be  made or a statement that the note is payable to bearer;
f.    the date ,when and place where the note is issued;
g.    the signature of the person who issues the instrument (maker).

Art. 824. – Requirements absent.

    Where any of the requirements provided in Art. 823 is absent, the instrument shall not be valid as a promissory note except in the oases specified in sub-art. (a), (b) and (c) hereunder:
a.    a promissory note in which the time of payment is not specified shall be deemed to be payable at sight;
b.    unless otherwise expressly specified, the place where the instrument is made shall be deemed ,to be both t1he place of payment and the place of the domicile of the maker;
c.    a promissory note which does not mention the place where it was made shall be deemed to have been made in the place mentioned beside the name of the maker.

Art. 825. – Reference to provisions relating to bills of exchange.

1.    The following provisions relating to bills of exchange shall apply to promissory notes insofar as they are not inconsistent with the nature of these instruments:
a.    endorsement (Al1t. 746-756);
b.    time of payment (Art. 769-773);
c.    recourse in case of non-payment (Art. 780-793, 795-797);
d.    protests (Art. 781-791);
e.    redrafts (Am. 795);
f.    payment by intervention (Art. 802, 806-810);
g.    copies (Art. 814 and 815);
h.    alterations (Art. 816);
i.    limitation 01.actions (Art. 817 and 818);
j.    holidays, calculation of time limits and prohibition of days of grace (Art. 819-822).
2.    The following provisions shall also apply to promissory notes: the provisions concerning a bill of exchange payable at, the address of a third party or in a locality other than that of the domicile of the drawee (Art. 738 and 763); stipulation for interest (Art. 739); discrepancies as regards the sum payable (Art. 740); the consequences of signature under the conditions mentioned in Art. 741; the consequences of signature by a person who acts without authority or who exceeds his authority (Art. 742); and the provisions regarding bills of exchange in blank (Art. 744).
3.    The following provisions shall also apply to promis50l1y notes: provisions relating to acceptance for honour (Art. 766-768); in the case provided for in Art. 767 (4), where the acceptance for honour does not specify on whose behalf h has been given, it shall be deemed to have been given on behalf of the maker of the promissory note.

Art. 826. – Liability of maker. Presentment and time after sight.

1.    The maker of a promissory note shall be bound in the same manner as an acceptor of a bill of exchange.

2.    Promissory notes payable at a certain time after sight shall be presented for the visa of the maker within the limits of time fixed by Art. 759. The limit of time shall run from the date of the visa signed by the maker on the note. The refusal of the maker to give his visa with the date thereon shall be authenticated by a protest (Art. 761), the date of which marks the beginning -of the period of time after sight. 

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