PART V

INTERVENTION FOR HONOUR

 

Section 950.- The drawer or an indorser may specify a person who is to accept or pay in case of need at the place of payment.

A bill of exchange may, under the conditions hereafter set forth, be accepted or paid by a person who intervenes for any person who has signed it.

The intervener may be a third person, even the drawee, or the person already liable on the bill, except only the acceptor.

The intervener is bound to give without delay notice of his intervention to the party for whom he has intervened.

 

(1)  ACCEPTANCE FOR HONOUR

 

Section 951.- There may be acceptanceby intervention in all cases where the holder has the right of recourse before maturity on a bill which is capable of acceptance.

The holder may refuse an acceptance by intervention, even when it is offered by a person designated to accept or pay in case of need.

If he permits the acceptance he loses his right of recourse before maturity against the parties liable to him.

 

Section 952.- Acceptance by Interventionfor Honour is specified on the bill of exchange. It is signed by the intervener. It specifies for whose account it has been given, and in default of this specification the acceptance is deemed to have been given for the drawer.

 

Section 953.- The acceptor by intervention is liable to the holder and to the indorsers subsequent to the party for whose account he intervened in the same manner as the latter.

 

(2)  PAYMENT FOR HONOUR

 

Section 954.- Payment for Honour may take place in all cases where either at maturity or before maturity the holder has the right of recourse.

At the latest it must be made on the day following the last day allowed for drawing up the protest for non-payment.

 

Section 955.- If a bill of exchange has been accepted for honour, or if persons have been specified to pay it in case of need, the holder must at the place of payment present the bill to all these persons, and, if need be, cause a protest for non-payment to be drawn up at the latest on the day following the last day for drawing up the protest.

In default of protest within this limit of time, the party who has indicated the case of need, or for whose account the bill has been accepted, and the subsequent indorsers are discharged.

 

Section 956.- Payment for Honour must include the whole sum which the party for whom it is made would have had to pay, with the exception of the commission provided for by Section 968 (4).

The holder, who refuses this payment, loses his right of recourse against those who would have been discharged thereby.