Section 957.- Payment for Honour must be authenticated by a receipt given on the bill of exchange specifying for whom payment has been made. In default of this specification, payment is deemed to have been made for the drawer.

The bill of exchange and the protest, if the protest has been drawn up, must be handed over to the person paying for honour.

 

Section 958.- The person, who pays for honour, is subrogated to the rights of the holder against the party for whom he has paid, and against the parties liable to him. Nevertheless he cannot indorse bill of exchange afresh.

Indorses subsequent to the party for whom payment has been made are discharged.

In case of competition for payment for honour, the payment which effects the greater number of releases has the preference.

If this rule is not observed, the payer who has notice loses his right of recourse against those who would have been discharged.

 

PART VI

RECOURSE FOR NON-ACCEPTANCE OR NON-PAYMENT

 

Section 959.- The holder may exercise his right of recourse against the indorsers, the drawer and the other persons liable under the bill :

a)     At maturity, if payment has not been made ;

b)     Even before maturity.

(1)   When acceptance has been refused ;

(2)   When the drawee, whether he has accepted or not, has become bankrupt, or has suspended payment, even if the suspension is not authenticated by a judgement ; or where execution has been levied against his goods without result ;

(3)   When the drawer of a bill, which need not be accepted, has become bankrupt.

 

Section 960.- Default of acceptance of payment must be evidenced by a formal document, called protest.

Protest for non-payment must be made either on the day when the bill is payable or on one of the three following days.

Protest for non-acceptance must be made within the limit of time fixed for presentment for acceptance or within three following days.

Protest for non-acceptance dispenses with presentment for payment and protest for non-payment.

In the cases provided for by Section 959 b) (2), the holder cannot exercise his right of recourse until after presentment of the bill to the drawee for payment, and after the protest has been drawn up.

In the cases provided for by Section 959 b) (3), the production of the judgement pronouncing the bankruptcy of the drawer, suffices to enable the holder to exercise his right of recourse.

 

Section 961.- A protest shall be made by a district officer (Nai Amphoe) or his deputy or by an attorney having a license for that purpose.

The Minister of Justice is empowered to issue Regulations for carrying out the provisions of this Code concerning the issue of the license and the making of the protest as well as for fixing costs and fees in connection therewith.