Bill of Exchange Law


25. Limitation

Limitation of rights relating to bills of exchange is regulated by Article I, Section 70, BECA. Limitation periods mentioned there mostly differ from the general limitation periods pursuant to Civil Code or Commercial Code. General principles hold, of course. The rights relating to bills of exchange are not cancelled by limitation but - if the debtor alleges the limitation of time - the right to recognition of these rights by the court, or by another authority, extinguishes. If a debt subject to limitation is accepted it is not unjust enrichment for the creditor. All actions arising out of a bill of exchange against the acceptor are barred after three years reckoned from the dare of maturity. Actions by the holder against the endorsers and against the drawer are barred after one year from the date of a protest drawn up within proper time, or from the date of maturity where there is a stipulation "without costs". Actions by endorsers against each other and against the drawer are barred after six months, reckoned from the day when the endorser took up and paid the bill or from the day when he himself was sued.

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Chapter 25

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Chapter 25