VI. RESOLUTIONS OF THE CENTRAL COMMITTEE.

CHAPTER I.-OF THE ISSUE AND FORM OF THE BILL OF EXCHANGE.

Article 1.

A bill of exchange must contain:

1. Designation as a bill of exchange. This designation must be written in the body of the instrument and expressed in the national language of such instrument;

2. An unconditional order to pay a sum certain;

3. The name of the party who is to pay;

4. Indication of the date of maturity;

5. Indication of the place where payment is to be made;

6. The name of the party to whom payment should be made.

7. The indication of the place where the bill is drawn and the date of drawing.

8. The signature of the drawer.

It is reserved, nevertheless, to national laws to decide that the clause "to order" shall be sufficient to give to a document the character of a bill of exchange even when it does not contain such designa

tion.

The bill of exchange may be drawn from one place upon another or from one place upon the same place. It is not necessary that it specify that value has been given.

Article 2.

Every bill of exchange, even if it is not expressly drawn to order, is transmissible by indorsement, except in the cases prescribed by

article 3.

It may be to the order of the drawer himself.

It may be drawn upon the drawer himself, in which case it shall be considered as a promissory note to order and shall not be made to the order of the drawer himself.

It may be drawn for account of a third party.

Article 3.

It is re

The bill of exchange may be made payable to bearer. served, nevertheless, to each contracting State to prohibit this form of document for bills of exchange drawn, guaranteed, accepted, or payable within its own territory, whether such bills are at sight or

not.

The drawer may forbid the transfer of the bill of exchange by inserting therein the words "not to order" or any equivalent expression. In this case the bill is transferable only with the formalities and with the ordinary effects of an assignment.

Article 4

In a bill of exchange payable at sight or at a certain time after sight, it may be stipulated by the drawer that the amount shall bear interest. Stipulation for interest in any other bill of exchange shall be considered null.

The rate of interest shall be indicated; in default of such indication the rate shall be 5 per cent.

Interest shall run from the date of the bill of exchange in the absence of a stipulation to the contrary.

Article 5.

If the amount of a bill of exchange is expressed in a different manner in words and in figures, it shall be valid for the sum written in words.

If the amount of the bill is expressed more than once either in words or figures, it shall be valid in case of conflict for the smallest

sum.

Article 6.

An instrument in which one of the particulars indicated in article 1 is lacking does not constitute a bill of exchange except in the cases set forth in the following paragraph:

A bill of exchange of which the maturity is not indicated shall be deemed to be payable at sight; a bill without indication of the place of payment shall be deemed to be payable at the residence of the drawee, provided that this residence is indicated expressly in the bill or can be determined with certainty from the text itself. A bill of exchange without indication of the place where it is drawn shall be deemed to have been signed in the place of residence of the drawer under like conditions.

Article 7.

Whoever places his signature on a bill of exchange as representative of another person shall be himself liable on the bill when he has not the right to represent said person or when he has exceeded his powers.

Article 7 bis.

If a bill of exchange bears the signatures of parties not having the capacity to contract, this fact shall not affect the validity of the obligations of other signers.

Article 8.

The drawer guarantees acceptance and payment of the bill. Any stipulation by which he exempts himself from guaranty of payment shall be considered null.

Article 9.

A bill of exchange may be made payable at the residence of a third party in the place of residence of the drawee. It may also be made ayable at some other place.

It may indicate a party who shall pay in case of need. The drawer may also indicate expressly a party who is to accept in case of need.

Article 10.

The drawer must deliver to the purchaser, upon his demand, several duplicates of the bill, the cost being at the charge of the purchaser. The duplicates should be identical and each should be numbered in the body of the instrument, in default of which each part will be deemed to be a distinct bill of exchange.

Article 11.

Payment made upon one part of a set shall be conclusive and shall nullify other drafts which are not accepted. It is not necessary that it be stipulated that payment when made on one part nullifies the effect of the others.

Recourse can be exercised against the indorser who has transmitted different drafts to the same person only by means of the delivery of all the drafts, unless the holder gives indemnity against the loss of recourse of such indorser against preceding indorsers and the drawer. The indorser, on the other hand, who has transferred parts to different persons, and all subsequent indorsers, shall be liable upon all the parts which have not been restored to him at the time of payment. Any holder may require the delivery of several drafts. With this object, the holder may address the preceding indorser, who is bound to lend his name and assistance toward his own indorser, and thus in succession from one indorser to another back to the drawer. The indorsers shall be bound to reproduce their indorsements on the new drafts. The expenses involved in the delivery of drafts shall be at the charge of the holder who has demanded them.

Article 12.

When a part of a set has been sent for acceptance, the person who has sent it must indicate on the other parts the name of the party with whom this part may be found. The latter is bound to deliver said part to the lawful holder of another part.

If he refuses to do so, the holder shall not be able to exercise recourse before having established by protest that the part sent for acceptance has not been delivered to him and that acceptance or payment can not be obtained upon another part.

Article 13.

Any holder of a bill of exchange is authorized to make copies of it. A copy must reproduce the original exactly, including indorsements and all other declarations which appear thereon, and should set forth how far it extends as a copy.

It may be indorsed in the same manner and with the same effects as the original.

The copy must specify the actual holder of the original document. If this actual holder refuses to deliver it to the lawful holder of the copy, the latter shall not be able to exercise recourse against the

persons who have indorsed the copy before having certified by a protest that the original has not been delivered to him, without prejudice to an action for damages, if there is occasion for it, against the party who has wrongfully retained the bill.

CHAPTER II.-OF INDORSEMENT.

Article 14.

The indorsement must be written upon the bill of exchange or on a sheet attached thereto (allonge), or on a copy. It must be signed by the indorser.

Indorsement shall be valid, although the person to whom the bill is indorsed is not named or although the indorser has confined himself to placing his signature on the back of the bill of exchange, or on an allonge, or on the back of a copy (indorsement in blank).

The indorsement of a bill of exchange to bearer shall operate oniv as guarantee (aval) of the signature of the drawer.

On any other bill of exchange indorsement to bearer shall be invalid.

Partial indorsement shall also be invalid.

Any condition added to an indorsement shall be considered null. A bill may be indorsed to the drawee, whether he is acceptor or not, to a previous indorser, or to the drawer, and such parties may give it a new indorsement.

Article 15.

Indorsement shall transfer to the holder all the rights arising from the bill of exchange.

The indorser, in the absence of a contrary stipulation, is guarantor of acceptance and of payment.

Article 16.

The parties liable on a bill of exchange can set up against the holder only:

1. The defenses which they have directly against the holder.

2. The defenses arising from the text of the bill.

3. The defenses founded on the provisions of the uniform law or on a special provision of the natural law (to which they are remitted).

4. The defenses based upon the incapacity of the signer.

In case of bad faith of the holder, the parties liable may set up against him the defenses of which they would have been able to avail themselves against the preceding holder.

The methods of proof of the defenses which may be set up against a holder shall be determined by national laws.

To the same laws it shall be left to determine that certain pleas set up against the holder by the parties liable shall not dispense them fy making payment, but shall permit them only to act against by way of action in restitution.

Article 17 (bis.).

If the indorsement is in blank, the holder may:

1. Fill up the blank with his own name.

2. Fill up the blank with the name of another person.

3. Transfer the bill to a third party without indorsing it and without filling up the blank.

4. Again indorse it in blank or in the name of another person.

Article 17 (bis..).

The holder of an indorsed bill of exchange shall be deemed to be its lawful owner, provided that he proves his ownership by an uninterrupted succession of indorsements, even though the last indorsement be in blank.

When an indorsement in blank is followed by another indorsement, the person who has placed this last indorsement on the bill is presumed to have acquired the bill under an indorsement in blank

Article 18.

The indorsement may indicate a party who is to pay in case of need.

It may be given without guarantee of payment, unless the indorser is himself the drawer (bill of exchange drawn to order of the drawer).

It may prohibit the holder from further indorsing the bill. In this case, the indorser is not a guarantor to those parties to whom the bill may be transferred.

It may contain the stipulation, " retour sans frais" (return without costs).

Stipulations inserted in an indorsement shall affect only the indorser who inserts them.

Article 19.

When the indorsement contains the stipulation "for collection," "by power of attorney," or any other stipulation implying agency, the holder shall be deemed to be the agent of the indorser.

The holder may exercise all the rights arising from the bill of exchange, but shall be able to indorse it only as agent.

The parties liable shall be able to set up against the holder only the defenses which could be set up against the indorser if indorsement by agency had not taken place.

66

Article 20.

When the indorsement contains the stipulation, "value as security," value as pledge," or any other words implying a deposit of securities, the holder shall be deemed to be a pledge-creditor.

He may exercise all rights arising from the bill, but he shall not indorse the latter, except by way of agency.