Section 998.- Where the banker, on whom a crossed cheque is drawn , in good faith and without negligence pays it, if crossed generally, to a banker, and if crossed specially, to the banker to whom it is crossed, or his agent for collection being a banker, the banker paying the cheque, and, if the cheque has come into the hands of the payee, the drawer, shall respectively be entitled to the same rights and be placed in the same position as if payment of the cheque had been made to the true owner thereof.

 

Section 999.- Where a person takes a crossed cheque which bears on it the words “not negotiable”, he shall not have and shall not be capable of giving a better title to the cheque than that which the person from whom he took it had.

 

Section 1000.- Where a banker in good faith and without negligence receives payment for a customer of a cheque crossed generally or specifically to himself, and the customer has no title or a defective title thereto, the banker shall not incur any liability to the true owner of the cheque by reason only of having received such payment.

 

CHAPTER V

PRESCRIPTION

 

Section 1001.- No action against the acceptor of a bill of exchange or the maker of a promissory note can be entered later than three years after the date of maturity.

 

Section 1002.- No action by the holder against the indorsers and against the drawer of a bill can be entered later than one year after the date of the protest drawn up in proper time or after the date of maturity where there is a stipulation “protest not necessary”.

 

Section 1003.- No action of recourse by the indorsers against each other and against the drawer of a bill can be entered later than six months after the day when the indorser took up and paid the bill or from the day when he himself was sued.

 

Section 1004.- When a prescription is interrupted by any act towards any party to a bill the interruption shall have effect against such party only.

 

Section 1005.- Unless otherwise agreed, if a bill has been made, transferred or indorsed in respect of an obligation and the rights under such bill have been lost by prescription or by the omission of any necessary proceedings, the original obligation remains in force under the general principles of law, in so far as the debtor has not been prejudiced thereby.