Law No. 23 of 2010 regarding Commercial Activity 

Page 6 of 13

Book Six Commercial papers 

Section One Bill of exchange 

Chapter one Bill of exchange and its formula 

Article 827 

Definition 

The bill of exchange is a written order according to certain terms defined by the law to be addressed by a person called withdrawee claiming, him for payment of a certain amount of money on a certain date or assignable to order of a person called the beneficiary.

Article 828 

Essential data of the bill of exchange 

The bill of exchange contains the following data: 

1. The word (bill of exchange) written on the bond body in the language in which he order is written.
2. Unconditional order for payment of a certain amount of money. C- Name of the person from whom payment is required (withdrawee). D- Statement of the entitlement or its maturity date. 
3. Place of payment. 
4. Name of the person to whom payment shall be made or to his order (beneficiary). 
5. Date and place of the bill of exchange establishment. 
6. Signature of the bill of exchange originator (withdrawee). 

Article 829 

Devoid of the bill of exchange of mentioning essential Data 

The bond which is free from one of the data setout in the previous article shall not be considered as a bill of exchange except in the cases shown in the following paragraphs: 

1. The bill of exchange free from entitlement statement or its maturity date shall be due for payment at sight. 
2. If the place of payment is not mentioned in the bill of exchange, then the place to be mentioned beside the name of the drawee shall be considered as a place of payment and as an address to the drawee. 
3. The bill of exchange which is free from the place of its origin shall be considered originated in the place shown beside the name of the drawee thereof. 

Article 830 

Withdrawal 

The bill of exchange may be withdrawn to the order of the drawer himself, it may be withdrawn also on him also as well as may be drawn to the credit of another person.

Article 831 

Stipulation of the address 

The payment of the bill of exchange may be stipulated in the address of another person either in the area where the address of the drawee is located or in another address. 

Article 832 

Stipulation of interests 

The withdrawer of the bill of exchange due for payment at sight or after a period of the sight may stipulate interest on the amount mentioned on it. This stipulation shall be null and void in other bills of exchange; the interest rate must be shown on the body of the bill of exchange itself. If it is free therefrom the stipulation shall be considered as null and void. The interest shall be effected from the date of the bill of exchange unless other date is assigned therein. 

Article 833 

Value of the bill of exchange 

If the amount of the bill of exchange is written in letter or figures together, then the consequence in difference shall be on what is written in letters or figures, then the consequence shall be on the lowest amount. 

Article 834 

Validity of the signature and capacity of the obligation 

If the bills of exchange borne signatures of persons not satisfying the capacity of obligation or false signatures or signatures of imaginary persons or signatures not obligating, for any other reason, the persons who signed the bill of exchange or who the same is signed in their name, that shall not prevent the validity of the obligation of other signatories of the bill of exchange. 

In determination of the capacity of the person who is bound under the bill of exchange shall be referred to the law of his country, however if a person is bound under the bill of exchange and satisfied the capacity of obligation according to the law of the country in which such obligation was issued, his obligation was valid even if it did not satisfy such capacity according to the law of his country.

Article 835 

Signature 

Any signature on the bill of exchange should include the name and surname of the committed person or the name and address of the commercial shop or the committed company, provided that the signature may be in brief or in initial only. The term of (signature) in this law shall be given to the execution, finger print and any other means which the law gives the capacity of the signature. 

Article 836 

Obligation of the minor and lacking of competence 

Any obligation under the bill of exchange originates from lacking of competence or legally incompetent shall be null and void for him only. 

Article 837 

The legal guardian or the executor who are not authorized to practice commerce 

If the legal guardian or the executor is not authorized to practice the commerce to the credit of the minor or the attachÈ, then he may not be binding under the bill of exchange to the credit of the minor or the attachÈ, except according to a permission from the court. The permission may be issued generally. 

Article 838 

Signature without deputation and its effects 

Anyone who signed a bill of exchange on behalf of another without having a capacity therein, his signature shall be personally bound, if he satisfied his obligation the rights which have been passed to the person for whom he allegated deputation shall be vested in him. 

This provision shall apply to any one who exceeded the limits of his deputation. However, the principal or the mandatory remains responsible also within the amount to which will was directed.

Article 839 

Non-supposition of the validity for obligation under the bill of exchange 

The general power of attorney issued to a person to abide by himself by the name and to the credit of another person, the validity of abidance by the bills of exchange shall not be supposed therewith unless the contrary is confirmed. If the general power of attorney is issued by a merchant, then the validity of abidance thereby shall be supposed unless the deputation paper provides expressly for otherwise. 

Article 840 

Extent of the drawer guarantee 

The drawer is a guarantor of acceptance and payment of the bill of exchange; he shall have the right to stipulate exemption from acceptance guarantee. Any condition provides for exemption from payment guarantee shall be considered null and void. 

Article 841 

Incomplete bill of exchange 

If the bill of exchange is incomplete at the time of its issuance and established contrary to the conditions agreed upon, its bearer may not be a protest against for non-consideration of the said conditions unless he has obtained it in bad faith or by a gross error. 

The bearer right to fill in the bill of exchange signed on blank shall lapse after expiry of three years from the date of its issuance. 

The lapse of such right shall not be a protest against the bearer of the bill of exchange which passed to him completely executed if he obtained it in good faith. 

Chapter Two 

Circulation of the bill of exchange 

Article 842 

Revolving of the bill of exchange 

The bill of exchange is subject to circulation through revolving even if the word of (to the order) is not expressly mentioned on it.

The bill of exchange in which its owner write down the expression of (not to the order) or any other similar expression its circulation shall be subject to provisions of the civil draft as per provisions of the civil law. 

The revolving shall be valid even for the drawee either subject to bill of exchange or not. Its revolving shall be valid also for the drawer and for any other person binding by it. All these persons shall have the right to its revolving. 

Article 843 

Revolving conditions 

Without prejudice to provisions of the article (844) the revolving shall be free from any condition, and any condition on which the revolving is pendent shall be null and void. The partial revolving shall be null and void. 

Revolving of the bill of exchange to its bearer shall be considered as revolving on blank. 

Article 844 

Validity of the revolving 

The revolving shall be written on the bill of exchange back or on other paper connected with (foot) and shall be signed by the revolver. The revolvee may not be restricted to signature of the revolver on blank. 

In this later case the revolving shall not be valid except if it was written on the bill of exchange back or on the paper connected with it. 

Article 845 

Right arising out of revolving the bill of exchange 

The revolving shall transfer all the rights arising out of the bill of exchange. If the revolving was on blank, its bearer may perform the following: 

1. Fill in the blank by writing his name or the name of another person. 
2. Revolving the bill exchange again or to another person. 
3. To deliver it as it is to any other person without filling in the bonds and without revolving.

Article 846 

Revolverís guarantee 

The revolver is a guarantor of acceptance and payment of the bill of execution, unless otherwise stipulated. 

He shall have the right to prevent its revolving and in this case, he shall not be binding by the guarantee before the bill of exchange is passed to them with subsequent revolving. 

Article 847 

The legitimate holder of the bill of exchange 

Anyone who has a bill of exchange in hand shall be considered as the legitimate bearer whenever he proved that he is the owner of the right thereto with revolving connected to each other even if the latest is revolving on blank. 

In this concern, the struck of revolving shall be considered null and void, if the revolving on blank is followed by another revolving, the signatory of the last revolving shall be considered as the party to whom the right to the bill of exchange is passed by that revolving on blank. 

If a person lost the possession of the bill of exchange by the reason of some accident, then its bearer, whenever proved that he is the owner of the right thereto according to the previous paragraph shall not be bound to return it unless he obtained thereof in bad faith or gross error. 

Article 848 

Inadmissibility of the pleading based on personal relationship 

Those against whom a bill of exchange lawsuit was brought shall have no right to protest against its bearer with pleadings based on their personal relationship with bill of exchange withdrawer or with its former bearer unless the bill of exchange bearer has obtained it with intention of causing harm to the debtor. 

Article 849 

Mandatory revolving 

If the revolving contained an expression of ((value for collection)) or (value for receiving) or ((proxy)) or any other statement to the effect of proxy, then the bearer shall have directly all the rights resulting from the bill of exchange with exception of its revolving unless it shall be for the sake of proxy. In this case those who are binding under the bill of exchange shall have no right to protest against the bearer except by the pleadings which may be protested thereby against the revolver. 

The provision of the proxy include in the mandatory, revolving shall not be expired by the death of the mandatory or occurrence of breach of its capacity. 

Article 850 

Revolving as a guarantee 

If the revolving contained an expression of a (value is a guarantee) or ìvalue is a mortgageî or any other statement to the effect of the guarantee the bill of exchange bearer shall have directly all the rights resulting therefrom, except that its revolving again shall be considered as a proxy. 

Those who are binding under the bill of exchange shall have no right to protest against the bearer by the pleadings based on their personal relationships with the revolver, unless the bearer has obtained the bill of exchange with intention to cause harm to the debtor. 

In this respect protection of the bearer shall be in the limits of his mortgage guaranteed debt. 

Article 851 

Revolving as to time 

The revolving subsequent to the maturity date shall have the provisions of the precedent revolving. But the revolving subsequent to the bringing of the protest due to non-payment or that occurred after expiry of the date appointed for this protest shall not result except in effects of the provisions related to transfer of the rights established in the civil law. 

The revolving free from the date shall be considered occurred prior to expiry of the appointed date for bringing the protest unless the contrary is confirmed. 

The dates if revolving shall not be presented otherwise, it shall be considered falsification. 

Article 852 

Presentation of the bill of exchange for acceptance 

The bearer of the bill of exchange and any possessor thereof may unfit its maturity date; present it to the drawee in his legal address for acceptance

Article 853 

Restrictions on presentation of the bill of exchange for acceptance 

The bill of exchange drawer shall have the right to stipulate the necessity of presentation for acceptance on a certain appointed time or without an appointed time. 

He shall have the right to provide for preventing its presentation for acceptance unless it is due for payment with other than the drawee or in another place other than the legal address of the drawee or due for payment after expiry of a certain date from its sight. 

He shall have the right also to stipulate prevention of presentation of the bill of exchange for acceptance before a certain term. The revolver shall have the right to stipulate the necessity of presentation of the bill of exchange for acceptance on a certain appointed time or without an appointed time unless the drawer has stipulated non-presentation thereof for acceptance. 

Article 854 

Presentation of the bill of exchange due for payment after a certain period from the sight. 

The bills of exchange due for payment after expiry of a certain period from the sight should be presented for acceptance within one year from its date. 

The drawer shall have the right to stipulate shortening or extension of such period and the revolver shall have the right to stipulate shortening of such period. 

Article 855 

Permissibility of resubmission for acceptance 

The drawer may request for submission of the bill of exchange again on the day next to the first submission. 

Allegation of the concerned persons that such request has been rejected shall not be accepted unless the same is written down on the protest paper. 

The bearer of the bill of exchange which has been submitted for acceptance shall not be under obligation to deliver it to the drawee.

Article 856 

Methods of acceptance and confirmation of its date 

The acceptance shall be written down on the bill of exchange itself and shall be expressed by the word ((acceptable)) or by any other similar expression and footed by signature of the drawee. 

The mere putting of the drawee signature on the front part of the bill of exchange shall be considered as an acceptance. 

If the bill of exchange is due for payment after expiry of a period from sight or it was ought to be submitted for acceptance in a known period upon special condition, the date of acceptance must be put on the day of its occurrence except if the bearer stipulated its date on the day of submission of the bill of exchange. 

If the bill of exchange is free from the date, the bearer, in maintaining his right to recourse to the revolvers or to the drawer, may confirm such freedom therefrom by a protest to be brought at a time on which its bringing shall be feasible 

Article 857 

Non-pending of the acceptance on a condition 

The acceptance shall not be pending on a condition, but the drawee may abridge the acceptance on a part of the bill of exchange amount. 

If the acceptance form is comprised, another amendment to one of the bill of exchange statements, such amendment shall be considered as a rejection thereof. 

Never the less, the acceptor shall remain binding by what is contained in the acceptance form. 

Article 858 

Nomination of acceptance place 

If the drawee assigned in the bill of exchange a place for payment other than the legal address of the drawee without assigning the name of the other person to whom payment shall be made, the drawee may assign such person on acceptance. If he did not assign him he shall be considered binding by payment in the place of fulfillment.

If the bill of exchange was due for payment at the legal address of the drawee he may assign in the acceptance form, an address in the place where the fulfillment must be made. 

Article 859 

Obligations arising out of the acceptance and the bearerís right to direct lawsuit 

By acceptance of the bill of exchange the drawee shall be binding by fulfillment, thereof on its maturity date. If he did not maybe the fulfillment, the bearer, even if he was the drawer himself, shall have the right to claimthe acceptor by a direct lawsuit for all the results to be arisen out of the bill of exchange according to article (661, 662) of this law. 

Article 860 

Striking out of the acceptance 

If the drawee struck out his acceptance recorded on the bill of exchange before returning it, it shall be considered as rejection of acceptance and the striking out is considered effected prior to returning the bill of exchange unless he presented an evidence to the contrary. 

But if the drawee has informed the bearer or any other signatory of his written acceptance, he shall binding towards them by the content of the acceptance form. 

Article 861 

Reserve guarantee 

Extent of the Reserve Guarantee and who may submit it fulfillment of all or some of the bill of exchange amount may be guaranteed by a reserve guarantor ñ such guarantee shall be accepted from any person even if he is among the bill of exchange signatories. 

Article 862 

Methods of confirmation of the reserve guarantee 

The reserve guarantee shall be written on the bill of exchange itself or on a paper attached to it (foot). 

Such guarantee shall be by putting the expression of (acceptable as a reserve guarantee) or by any other similar expression to be footed by the guarantor signature. The name of the person to whom the guarantee is submitted in his

favor shall be mentioned in the guarantee form otherwise it shall be considered in the favor of the drawer. The guarantee shall be considered existing if its provider put his signature only on the front part of the bill of exchange on the bill of exchange unless he is a drawal or drawee. 

Article 863 

Obligations and rights of the reserve guarantor 

The reserve guarantor shall be binding by the obligation of the guaranteed person. The obligation of the guarantor shall be valid ever it the obligation which he included is null and void for any reason whatsoever, unless attributed to a defect in form. 

If the guarantor has fulfilled the value of the bill of exchange, all the rights arising out of it towards his guaranteed and committed persons under the bill of exchange shall be vested in him. 

Chapter Four Maturity term 

Article 864 

Appointment of the term 

The bill of exchange shall be due for payment as following: 

1. At sight 
2. After expiring of a certain period from the sight 
3. After expiring of a certain period from the date of its origination 4- For a certain day itself 

The bill of exchange containing a date of maturing other than the mentioned or successive appointed dates shall be considered null and void. 

Article 865 

Maturity of the bill of exchange due at sight 

The bill of exchange due for payment at sight shall be payable on its submission and shall be submitted for payment within one year from it date. The drawer shall stipulate shortening or extending this period.

The revolvers shall stipulate shortening of this period and the drawer shall stipulate non-submission of the bill of exchange due for payment at sight prior to expiring of a certain term. In this case the submission period shall be calculated with effect from such term. 

Article 866 

Starting validity of the maturity term duration 

The period at the end of which payment shall be due shall apply to the drawn bill of exchange after expiring of a period of the sight from the date of its acceptance or from the date of the protestation paper for non-acceptance. 

If the pretest is not brought, the acceptance free from the date is considered as occurred for the acceptor on the last day of the period assigned for submission for acceptance. All that with consideration to provision of the article (854) of this law. 

Article 867 

Bill of exchange by months, half months and days 

The bill of exchange withdrawn for a month or more from its date or from the date of sight, its maturity term shall fall on its correspondence date of the month in which payment shall be effected. 

If there is no correspondence to that date in the month in which payment shall be made, the maturity term shall be on the last day of this month. 

If the bill of exchange is withdrawn for one month and half month from its date or from the date of its sight, the calculation shall be started with full months. 

If the maturity term shall be at the earlier of the month or in mid-month or at the end of the month, the intention was the first day of the month and the expression of (half month) shall mean fifteen days. 

Article 868 

Conflict of dates 

If the bill of exchange is due for payment certain day and in a country having a calendar different from the calendar of the country of its issue, the maturity date shall be considered fixed according to the calendar of the payment country.

If the bill of exchange was withdrawn between two countries having different calendar and it was due for payment at sight or after a period from the origination, the date of its issue shall be referred to the corresponding day on the calendar of the payment country and the maturity terms shall be appointed accordingly. 

The date for submission of the bill of exchange shall be calculated according to provisions established in the previous paragraph. These provisions shall not apply, if it is provided for in the bill of exchange or derived from the data setout therein that the intention was turned to follow up of other provisions. 

Article 869 

Submission for payment term 

The bearer of the bill of exchange which is due for payment on certain day or after a certain period from its date or from the date of the sight, shall present it on the day of its maturity or on the next two working days. 

Article 870 

Place of payment 

The bill of exchange should be submitted for payment in the place indicated on it, such place may be in the following form: 

1. The legal address for payment. 
2. The legal address of the drawn object or the legal address of the person nominated in the bill of exchange for payment instead of him. 
3. The legal address of the bill of exchange acceptor through interference or the legal address of the person nominated in the bill of exchange for payment instead of him. 
4. The legal address of the person whose name is mentioned for submission when necessary. 

Article 871 

Claiming for delivery of the bill of exchange and Partial fulfillment 

The drawee shall on payment of the bill of exchange amount, claim the bearer to deliver him the bill of exchange signed to the effect that the payment is made and the bearer shall have no right to refuse partial payment.

If the payment was partial, the drawee may claim for confirmation of such fulfillment in the bill of exchange and shall request the receipt thereof. 

What is to be paid out of the original amount of the bill of exchange, the obligation of the committed persons shall be relieved therefrom. 

The bearer should bring a protest for the remaining thereof. 

Article 872 

Validity of the fulfillment 

The bill of exchange bearer shall not be forced to received its value prior to maturity date. If the drawee made payment prior to maturity date he shall bear the consequences of the same. Any who made payment on the maturity date, his obligation shall be relieved unless it was effected through deception or gross error and he must be ascertained of the validity of the sequence of the revolving , but he is not bound to confirm the validity of the revolvers signatures. 

Article 873 

Fulfillment of the bill of exchange in a currency contrary to the Libyan currency 

If it is stipulated that the bill of exchange in currencies not circulated in the country of fulfillment, its amount maybe fulfilled in currencies of the country as per their value on its maturity day. If the debtor delayed in payment, the 

bearer shall have the option between claiming the bill of exchange amount valued by the country currencies on the maturity or fulfillment day. 

The practice of the country of fulfillment shall be followed in fixing the value of the foreign currencies. The drawer shall stipulate calculation of the amount to be paid according to a certain price in the bill of exchange. 

If the bill of exchange is fixed in currencies bearing joint nomination having different value in a country of issuance from its value in the country of its fulfillment, the intention was the currencies of the country of fulfillment. 

Article 874 

Non-submission of the bill of exchange for payment 

If the bill of exchange is not presented for payment on the maturity date, each debtor thereby my deposit its amount with the competent court.

The cost and consequences thereof shall be at the expenses of the bearer. The clerk of the competent court should execute a document containing the date of the bill of exchange, date of its maturity and the name of the person in favor of whom it was executed originally, in addition to the other data which should be written down in the minutes of deposit and such document shall be delivered to the depositor. 

If the bearer claimed the debtor for payment, the latter has nothing but to deliver the deposit document against receiving the bill of exchange. Under this document the bearer shall receive the deposited amount. If the depositor debtor did not delivered the deposit document to the bill of exchange bearer, should pay its value to him. 

Chapter Five Claiming and recourse for acceptance and non-payment 

Article 875 

Mode of recourse 

On non-payment of the bill of exchange on maturity date to the bearer he shall have the right to recourse to its drawer, revolvers and others who are committed thereby. 

He shall have the right to recourse to those prior to maturity date in the following cases. 

In case of total or partial abstention from acceptance. In case of bankruptcy of drawee either accepted the bill of exchange or not and in case of stopping payment of his debt even if his stoppage did not confirmed by a judgment and in case of infeasible attachment on his properties. 

In case of bankruptcy, of the bearer of the bill of exchange made conditional for non-submission for acceptance, but the guarantor may, on recourse to them in the mentioned cases, request the judge of the summary justice in their place and within three days from the date of recourse to them a time limit for payment, if the judge found the request reasonable he shall fix in his decision the time on which the bills of exchange should be paid, provided that the granted time limit shall not exceed the date fixed for maturity term.

Article 876 

Conditions of protest and cases which do not need bringing thereof 

The abstention from acceptance or payment must be written down on formal document ((protest for non-acceptance)) or (non-payment). 

The protest for non-acceptance should be brought on the date appointed for presenting the bill of exchange for acceptance. If its first presentation for acceptance in the case shown in the first paragraph of the article (855) of this law occurred on the last day of the date limited to this end the protest may also be brought on the next day. 

The protest for non-payment of the bill of exchange due for payment should be brought on a certain day or after expiry of a certain period from its date or from the date of sight on one of the two working days next to its maturity date. If the bill of exchange is due for payment at sight, the protest should be brought for non-payment according to the conditions shown in the previous paragraph and related to protest for non-acceptance. 

The protest for non-acceptance shall suffice for submission of the bill of exchange for payment and for protest for non-payment. 

In case of suspension of the drawee from payment, either accepted the bill of exchange or not as well as in case of infeasible attachment of his properties, the bearer of the bill of exchange may not recourse to his guarantors, unless after submission of the bill of exchange to the drawee for payment and after bringing the protest for non-payment. 

In case of bankruptcy of the drawee either accepted the bill of exchange or not, as well as in case of bankruptcy of the drawer of the bill of exchange which is conditional with non-submission for acceptance. The submission of the judgment of declaration of the bankruptcy shall be sufficient in itself to enable the bearer to exercise his rights to recourse. 

Article 877 

Methods of notice of non-acceptance or non-payment 

The bill of exchange bearer must send to the revolver and the drawer a notice of non-acceptance or non-payment within the four working days next to the day of protest or the day of its submission for acceptance or payment if contained a condition for recourse without expenses.

Any revolver should, within the two working days next to receiving the notice, notify his revolver of the notice which he received indicating to him the names and addresses of the parties who served the previous notices and so on from a revolver to another until reaches to the drawer of the bill of exchange. The advanced appointed time for each revolver shall start from the day on which he received the notice from its previous revolver. 

Whenever one of the bill of exchange signatory is notified according to provisions of the previous paragraphs, his reserve guarantor also should be notified at the same appointed time. 

If one of the revolvers did not show his address or show it in an illegible manner, he shall suffice with notification of the previous revolver to him. 

Anyone to whom notice is necessary shall serve it in any form even by returning the bill of exchange itself. He shall confirm the sending of the notice on the appointed date. 

The appointed date is considered respected if the notice is sent within thereof by a mailed letter. 

Non-sending of the notice on appointed date shall not result in lapse of any rights of the person who should perform thereof, but when necessary, he shall be responsible for compensation of the damage which resulted from his negligence, provided that such compensation shall not exceed the bill of exchange value. 

Article 878 

Stipulation of non-bringing of protest 

The drawee and any revolver or reserve guarantor may exempt the bill of exchange bearer, when claiming recourse, from bringing protest for non- acceptance or non-payment whenever written on the bill of exchange ((without protest)) or similar expression footed with signature thereof. 

This condition shall neither exempt the bearer from submission of the bill of exchange on the established dates nor from sending the necessary notices. Any one who persist towards the bearer in non-observance of these dates shall prove thereof. If the drawer wrote this condition, it shall apply to all the signatories. But if written by one of the revolvers or one the reserves guarantor, then it shall not apply except to him alone.

Article 879 

Responsibility of the persons committed under the bill of exchange 

The drawer, acceptor, revolver and the reserve guarantor of the bill of exchange are responsible towards the bearer in jointly manner. 

Its bearer shall claim them individually or jointly without being under obligation to respect the order of obligation of each of them. Such right shall be confirmed I n respect of each one who signed and paid the value of the bill of exchange. The lawsuit brought against one of the committed persons shall not prevent from claiming the remaining committed persons even if their obligation is extending to those against whom lawsuit was firstly brought. 

Article 880 

Rights arising out of the recourse 

The bearer of the bill of exchange shall have the right to claim the person who has the right to recourse to him for the following:- 

1. Value of the unaccepted or unpaid bill of exchange with interests if they were conditional. 
2. Interests accompanied with their legal price with effect from the date of maturity. 
3. Expenses of the protests, notices and other expenses. 

If the right of recourse is exercised prior to maturity of the bill of exchange, its value shall be reduced by an amount to be calculated on the basis of the period between the date of recourse and the maturity of the bill of exchange at the formal discount rate on the recourse and at the place where the legal address of the bearer is located. 

Article 881 

Claiming the guarantors 

Anyone who paid the bill of exchange may claim its guarantors for the following:- 

1. All the amounts which have been paid. 
2. Interests of the paid amount calculated at the legal price with effect from the day of payment.
3. Expenses which he has incurred. 

Article 882 

Rights arising out of the bill of exchange 

Any committed person against whom the right of recourse is exercised or targeted thereby shall have the right, in case of payment of the bill of exchange, to claim delivery thereof with the protest paper and receipt of what he has paid. 

Any revolver who has paid the bill of exchange shall have the right to claimfor striking his revolving out and the revolving of the subsequent revolvers. 

Article 883 

Case of recourse to unacceptable part of the bill of exchange value 

1. In case of recourse to one of the committed person at an unacceptable amount at the bill of exchange value, the person who has paid such amount shall request its bearer to confirm such payment in the bill of exchange and shall give him a receipt thereof. 
2. In addition to that the bearer should deliver him a copy of the bill of exchange certified by him to the effect that it is a true copy thereof and shall deliver him the protest paper to enable him to recourse to a third party for what he has paid. 

Article 884 

Bill of exchange of recourse 

Anyone who has the right of recourse to other guarantors under the bill of exchange shall receive its value by withdrawal of a new bill of exchange payable at sight in the legal address of the guarantor unless otherwise stipulated. 

The bill of exchange of the recourse shall include the amounts setout in article (880) of this law in addition to the paid commission and stamp duty. 

If the drawer of the bill of exchange of the recourse is the bearer, its value shall be fixed on the basis under which the value of the bill of exchange, withdrawn at sight from the place where the original bill of exchange was payable to the place where the legal address of the guarantor is located shall be fixed, but if it is to drawer is one of the revolvers, it value shall be fixed on the basis under which the value of the bill of exchange withdrawn at sight,

from the place of the bill of exchange of recourse to the place where the legal address of the guarantor is located, shall be fixed. 

Article 885 

Prescription by expiry of the period 

The rights of the bearer of the bill of exchange towards its revolvers, drawers and other committed persons with exception of its acceptor shall lapse by expiry of dates appointed for performing the following:- 

1. Submission of the bills of exchange payable at sight or after expiry of a certain time thereof. 
2. Bringing the protest for non-acceptance or non-payment. 
3. Submission of the bill of exchange for payment if included a condition of recourse without expenses. 

If the bill of exchange is not presented for acceptance on the date stipulated by the drawer, the rights of its bearer to recourse shall be prescribed due to non-acceptance or non-payment, unless it is appeared from the condition expression that the drawer did not intend thereof except exempting himself from warranting the acceptance. 

If the revolver was stipulating in his revolving an appointed time for presenting the bill of exchange for acceptance, then he shall have alone to make use of his stipulation. 

Article 886 

Legitimate objections preventing from submission of the bill of exchange or bringing protest on established terms 

If an insurmountable forcible incident prevented from submission of the bill of exchange or bringing the protest on established appointed times, thereof, such appointed times shall be extended. 

The bearer of the bill of exchange shall, without delay notify the previous revolver of the forcible reasons and shall write down such notice, dated and signed by him on the bill of exchange or on the paper connected with it. The provision of article (877) shall be applied on the remaining revolvers.

If the forcible reasons are removed, the bearer of the bill of exchange should submit for acceptance or payment without delay and should bring the protest when necessary. 

If the forcible reasons persisted for more than thirty days from the maturity date, it shall be allowable to recourse without need for submission of the bill of exchange or bringing the protest. 

The term of thirty days shall apply to bills of exchange (at sight) or ((for a period after sight)) from the day on which the bill of exchange bearer notified the previous revolver of the forcible reasons, even if it was prior to submission 

maturity. But the bills of exchange for a period after sight shall be added to the thirty days, the term which shall start from the moment of the sight setout in the bill of exchange. 

The matters related to the bearer personality or to the person entrusted before him to submit the bill of exchange or bringing the protest shall not be considered as forcible reasons. 

Article 887 

The committed persons at the same order 

No reason for bringing a bill of exchange lawsuit if the committed persons thereof were multiple and equal in order. The relations between them shall be organized as per provisions applicable in respect of joint obligation. 

Article 888 

The executive force of the bill of exchange 

The bill of exchange shall have the force of the bond which should be executed as related to original and attachment shown in articles (880, 881 ñ 884). 

The bill of exchange issued in foreign countries shall have the same force provided that the same shall be allowed by the law of the country in which it has been issued. The warning for payment should include a copy of the bill of exchange or of the protest and all the documents necessary for confirming the required amount. In the obligation arising out of the bill of exchange which is signed by proxy, the document of the power of attorney should be mentioned also in the warning.

Article 889 

Objection to warning 

Objection to warning shall not suspend its execution, but the competent judge of the summary matters may issue an order causing suspension of all or a part of the execution operations if the opponent based his lawsuit on non- recognition of the signature attributed to him or the proxy or on other serious and heedful reasons. 

The judge should impose submission of an appropriate cash guarantee in the order. 

Article 8890 

Aspects of pleadings in bill of exchange lawsuit 

In lawsuits related to the bill of exchange either when considering it or considering the objections to warning, the debtor may not protest for cancellation of the bill of exchange unless by the pleading provided for in article (848). If the pleadings of the person who submitted them shall be of long investigation, the judge should have the right to issue, upon request of the creditor, a temporary judgment against the debtor with imposition of submission of a guarantee or without it. 

He shall have the right also to allow for stay of execution if requested by the debtor and necessitates by reasonable causes and shall impose submission of an appropriate guarantee if he deems thereof appropriate. 

If he already suspended execution of the warning according to the previous article, then the judge shall decide either confirmation or cancellation of the suspension. 

Article 891 

Lawsuits related to reasons of establishment of the bill of exchange 

If a lawsuit is arisen out of the relation which led to issuance or transfer or the bill of exchange, the lawsuit shall remain existing in spite of issuance or transfer of the bill of exchange, unless occurrence of renewal is proved. 

Such lawsuit shall not be brought unless after confirmation of non-acceptance or non-payment by protest.

The bearer of the bill of exchange shall not be entitled to bringing the causative lawsuit. Unless if he proposes to the debtor or return the bill of exchange to him and lodged it with process servers office of the competent court, provided that he should have, before that, taken the actions necessary for maintaining the right of the said debtor to bring a recourse lawsuit. 

Article 892 

Lawsuit of enrichment without reason 

If the bearer lost the right to bring lawsuit of the bill of exchange against all the committed persons and have no causative lawsuit against them, he shall have the right to bring a lawsuit against the drawer or the acceptor or the revolver by the amount with which they have enriched without right in causing damages to him 

Article 893 

Persons entitled to bring formal protest 

The protest must be written down on one paper by the notary public or competent court clerk or the process server. 

The persons mentioned in the previous paragraph shall be amended by a fine not less than five hundred dinar and not more than one thousand dinars if they refrain without reason, from withdrawing the protest in the manners and on the legally appointed times, in addition to claiming them for compensation if necessary. 

Article 894 

Mode of bringing protest and its formula 

The protest may be written on the bill of exchange itself or on separated paper or on its second version or on its copy or on an annex to be attached to it. The annex may be added by the notary public or competent court clerk or the process server. 

But in any way they should put their stamps on the attachment line. 

If the protest is on a separated paper. Anyone who wrote down thereof shall indicate thereof on the bill of exchange or on its second version or on its copy or on the annex attached thereto thus, unless it was necessary to bring the protest without availability of the bill of exchange.

Article 895 

Non-replacement of the protest 

Any action shall not replace the protest except in the case of loss of the bill of exchange, and then the provisions regarding consideration of the bill of exchange as total loss shall apply.

Article 896 

Authorities of protest and to whom it shall be brought 

The protest should be brought in the places referred to in article (870) and against the persons mentioned in paragraph (2, 3, 4) as per their order even if they were not available. 

If it is different to find the address of the mentioned persons, it shall not prevent from bringing the protest. 

Unavailability of the legal capacity of the persons to whom the bill of exchange should be presented, shall not prevent from bringing protest against them, with exception of what is provided for in the last paragraph of article (876). 

In case of death of the person to whom the bill of exchange shall be presented, the protest shall be brought against him in his name as per the previous rules without paying attention to his death. 

Article 897 

Essential contents of the protest 

The protest paper shall include the name of the object to be brought, date of protest, copy of the bill of exchange and expressions of acceptance and revolving written down thereon with mentioning of the person whom the recommendation is made by his acceptance or payment of the bill of exchange when necessary.

It shall include also the notice of acceptance of the bill of exchange or payment of its value. The attendance or absence of the claimed person, reason of abstention from acceptance or payment and failure to put the signature or abstention therefrom shall be mentioned thereon, all that shall be accompanied by the signature of the person entrusted to bring the protest. 

If the bills of exchange which should be accepted or paid by one person in one place are multiple, the creditor may bring the protest by one separated paper;

Article 898 

Duties of the official entrusted to bring protests 

The person who is entrusted with power to make protest, shall leave a correct copy thereof to the person to whom same is addressed and shall make entry of all the protest paper day by day as per order of the date in a particular register of numbered pages and commented as per the rules. 

He should present every fifteen days to the chief of the competent count of the first instance a list of those protests, provided that such list shall include the date of the protest, name and address of the drawee, name, surname and address of the payment claimant, date of maturity of the bill of exchange, the required amount and reason of non-payment. 

The entry is the said registered shall be effected in the manner applicable in the index records and if the failed, he shall be under obligation to pay compensation to the concerned persons. 

The person who is entitled to effect protest should send to the commercial registered office, within jurisdiction of which the place of effecting the protest is located, during the first ten days of each month a list of protests which he has executed during the previous month about the unaccepted bills of exchange. 

The commercial registered office should keep a book for entering the previous data and each person may see the same against the established fees. 

Article 899 

Case of non-obligation to bring protest 

If the drawer did not stipulate in the bill of exchange the necessity of protest, it may be replaced if its bearer agreed upon by acceptance or payment to be written and dated on the bill of exchange or on an annex connected therewith or on a separate paper accompanied with signature of the drawee. 

In order that such statement shall have the force of protest it should be registered on the same appointed terms of the protest. In case provided for in the first paragraph, the revolving free from the date shall be considered as occurred prior to execution of the said statement.

Article 900 

Multiplicity of recourse bills of exchange 

If the recourse bills of exchange are multiple, the original bill of exchange drawer and each of its revolvers shall not be claimed except for the expenses of one recourse bill of exchange.

Chapter Six Interference, multiplicity of copies and images, distortion, considering bill of exchange in the rule of non-existence, statute of limitation.

Article 901 

Nomination of the interferer 

The drawer, revolver and reserve guarantor of the bill of exchange shall assign the person who shall accept or pay it when necessary. According to the condition shown below the bill of exchange may be accepted or paid from any person interfering in the favor of any committed person through recourse. 

The interferer may be other than the person committed by the bill of exchange. He may be also the drawee or any person committed under the bill of exchange except the acceptor. 

The interferer should notify the person who signed in his favor of his interference within the two working days following his interference, otherwise he shall be under obligation of compensation for the damage which shall arise out of his negligence, provided that such compensation shall not exceed the amount of the bill of exchange. 

Article 902 

The Prescribed Conditions for Validity of the Interference 

The acceptance through the interference shall occur in all the cases in which the bearer of the bill of exchange which should be presented for acceptance shall have the right of recourse prior to the maturity terms. 

If the person who shall accept the bill of exchange or pay its value when necessary in the place of its payment is assigned in it, then the bearer shall have no right to recourse, prior to maturity of its term, neither to the person from whom the nomination was issued nor to the subsequent signatories except if the bill of exchange is presented to the person who has assigned for its acceptance or payment when necessary and refrained from accepting it and confirmed this abstention by the protest paper. 

In other cases, the bearer shall have the right to reject the acceptance by interference, but if he acknowledged it his right to recourse before the maturity date to the person who signed the acceptance in his favour and to the subsequent signatories shall be lapsed. 

Article 903 

Methods of Acceptance and Elements of its Validity 

The acceptance of the bill of exchange through interference shall be written down on the bill of exchange itself and shall be signed by the interferer and shall mention in the acceptance form the name of the person to whom the interference was occurred in his favour, otherwise the interference shall be considered in the interest of the drawer. 

Article 904 

Obligations of the Interference Acceptor 

The acceptor through interference toward the bearer and subsequent revolvers shall undertake to the person to whom interference is occurred in his favour by what the latter shall undertake. 

Anyone to whom the interference occurred in his favour and in the interest of his guarantors, may in spite of the acceptance through interference, receive from the bill of exchange bearer the protest paper and the receipt, if any, if they have made payment of the amount shown in Article (880) of this Law. 

If the bill of exchange was not presented to the acceptor through interference within the day next to the last day allowed for bringing the protest for non- payment the provision of obligation of the acceptor by interference shall be lapsed. 

Article 905 

Mode of Payment of the Bill of Exchange by Interference and Protest for Non-Payment 

The bill of exchange may be paid by interference in all the cases in which its bearer shall, on maturity date or before it, have the right of recourse to the persons committed by it.

This payment shall be made by settlement of the whole amount which would have been paid by the person to whom the interference is occurred in his favour in relieving his obligation.

Article 906 

Legal Address of the Interference, Relief of Obligation of the Persons Committed by Interference in Case of Non-Bringing the Protest 

If the acceptance of the bill of exchange by the way of interference or the persons assigned to pay it when necessary have a legal address at the place of payment. The bearer of the bill of exchange should present it to all of themand brings a protest for non-payment if necessary, at most on the day following the last day of the date appointed for bringing such protest. If the protest is not brought on such appointed date, the person who has assigned the payer or the person to whom the acceptance is occurred in his favour and all the subsequent revolvers shall be relieved from their obligations. 

Article 907 

Rejection of Acceptance of payment through Interference by the Bearer 

If the bearer of the bill of exchange rejected payment by the interference his right to recourse to the person whose obligation shall be relieved by such payment. 

Article 908 

Confirmation of Payment through Interference 

The payment through interference should be confirmed by an expression to be written on the bill of exchange to the effect that the payment is reached and the person to whom the payment is made in his favour shall be mentioned; otherwise the payment is considered made in favour of the drawer. The bill of exchange shall be delivered to the payer and the paper of the protest, if any, shall be delivered also to him. 

Article 909 

Rights and Obligations Arising out of the Payment through Interference 

The payer through interference shall acquire all the rights arising out of the bill of exchange from the person to whom the payment is made in his favour and from the persons committed by the bill of exchange towards the latter.

This payment may not revolving it and the obligations of the subsequent revolvers to whom payment is made in their favour shall be relieved. 

If a number of persons proceed to pay through interference, the preference shall be to the person who his payment shall result in relieving the obligations of a great number of the committed persons. 

Anyone who interfered for payment and he knew that his interference contradicting the previous provision, his right to recourse to the person, whose obligation would have been relieved if this interference was not occurred, shall be lapsed. 

Article 910 

Multiplicity of Versions 

The bill of exchange may be withdrawn in multiple versions corresponding to each other and the number of each version must be put on its body, otherwise each version of them shall be considered as separate bill of exchange. 

Any bearer of a bill of exchange not mentioned in it that it was unique, shall have the right to claim for its versions at his cost. 

In achieving thereof he should recourse to the person who revolved it to him. Such person must assist him to recourse to the previous revolver and thus until ending to the drawer. 

Article 911 

Effect of payment of the Bill of Exchange Versions 

Payment of the bill of exchange under one of its versions shall relieve the obligation even if it was not conditional that such payment shall cancel the provision of other versions. 

But the drawee shall remain under obligation to make payment under each version which he has accepted but not recovered. The revolver who revolved the bill of exchange versions to various persons and their subsequent revolvers shall be committed by all the versions bearing their signature, but not recovered.

Article 912 

Data which ought to be mentioned on the Versions 

Anyone who sends one of the bill of exchange versions for acceptance shall write down in the other versions the name of the person who that version exists in his hand. 

The latter should deliver it to the legitimate bearer of any other version. If he refused to deliver it, then the bearer shall have the right of recourse except if he proved by the protest paper that: 

1. The version sent for acceptance is not delivered to him when he requested. 
2. The acceptance or the payment is not occurred under another version. 

Article 913 

Execution of Copies, its Conditions and Effects 

The bill of exchange bearer shall have the right to produce copies thereof. The copies should be utterly true copies of the bill of exchange. They shall include the revolving and other data and shall be written down thereon that the reproduction of the original is ended at this limit. 

The copies may be revolved and reservedly guaranteed in the manner applicable to the original and shall have the provisions of the original. 

Article 914 

Circulation of the Copies 

The name of the person who has the original in hand should be indicated in the copy of the bill of exchange. The latter shall deliver this original to the legitimate bearer of the copy. If he refrained to do so, the bearer shall have no right to recourse to its revolvers or reserve guarantors unless proved by protest that the original is not delivered to him in spite of requesting thereof. If it is written down on the original, after the last revolving prior to putting the copy, the expression of (with effect from now the revolving shall not be valid except on the copy) or any similar expression, then, any revolving to be written down afterwards on the original shall be null and void.

Article 915 

Effects and Date of Distortion 

If distortion is occurred on the body of the bill of exchange, it shall be obligatory under its distorted body to anyone who signed on it after the distortion, while the previous signatories shall remain binding by its original body. 

If it is not appeared from the bill of exchange or not proved that the signature has been put prior to or after distortion, the signature shall be considered precedent to the distortion. 

Article 916 

Procedures of Considering the Bill of Exchange as Good as Lost and its Effects 

If the bill of exchange is lost or stolen or destroyed, its bearer should notify the drawee thereof and shall request, a judgment considering the bond as lost, through a petition to be brought to the chief of the Court of the First Instance within jurisdiction of which payment of the bill of exchange shall be made or to the judge of the Court of Summary Justice within jurisdiction of which the bearer domicile is located. The essential elements of the bill of exchange must be mentioned in the petition. If the bill of exchange is issued on blank, the data proving its identity should be mentioned in the petition. 

After confirmation of the right of the bill of exchange bearer, the Chief of the court of the First Instance or the Judge of the Court of Summary Justice shall issue a decision considering the bill of exchange as good as lost showing therein the elements and other data of the bill of exchange, and shall permit payment thereof after expiry of thirty days from the date of publication of the decision in procedures record, if the bill of exchange was matured or due at sight or with effect from the date of maturity if it was next to publication all that, unless the bill of exchange possessor has brought an objection during such term. 

The person who brought the petition shall communicate the said decision to the drawee. In spite of the bringing of the petition, but payment of the bill of exchange to its possessor shall relieve the obligation of the debtor if made prior to communication of the matter to him.

Article 917 

Methods of Objection 

The lawsuit of objection of the possessor shall be brought in all the cases through authorizing the person who brought the petition and the drawee to present before the Court of the First Instance at the place where the bill of exchange should be paid. 

Nevertheless, the person who brought the petition may perform, during the term established in Article (916), all the jobs which may lead to keeping of his rights, including claiming for depositing the amount of the bill of exchange judicially. 

Article 918 

Enforcement of the Judgment and Modes of Fulfillment of the Lost Bill of Exchange 

If the term referred to in Article (916) is expired without objection or rejection of objection by a final judgment, the lost bill of exchange became as good as total lost. Anyone who presents the decision considering the bill of exchange as good as total lost accompanied with a certificate from the Process Servers Office of the Court indicating non-objection or presents the final judgment of rejection of the lawsuit shall have the right to claim for payment or requesting a second copy if the bill of exchange is issued on blank or its terms not yet matured. 

The bill of exchange which is matured or payable at sight, the interests on it must be paid at the price referred to in Articles (880, 881) of this Law, unless the amount is deposited under Article (874) to the credit of the person who the decision of considering the bill of exchange as lost is issued in his favour or the judgment is issued in his favour. 

Article 919 

Removal of Enforcement of the Lost Bill of Exchange 

Without prejudice to the rights of the bill of exchange possessor to the person who obtained the judgment, then the judgment considering the bill of exchange as total lost shall deprived it of any right arising out thereof.

Article 920 

Duration of Prescription 

Any Lawsuit arising out of the bill of exchange shall be prescribed towards its acceptor by expiry of three years from the date of its maturity. But the bearer lawsuits against the drawer or revolvers shall lapse by the expiry of one year from the date of the protest brought within the legal duration, or from the date of maturity if the bill of exchange contained the recourse condition without expenses. The resolverís lawsuit against each other or against the drawer shall lapse by prescription by expiry of six months from the date on which the revolver has paid the bill of exchange or from the day on which the lawsuit has brought against him. 

The enrichment lawsuits shall be prescribed by expiry of one year from the day on which he lost the right to bring the lawsuit arising out of the bill of exchange. 

Article 921 

Commencement of Prescription Applicability 

The prescription dates shall not apply in case of bringing the lawsuit except from the last day of its affection. The prescription shall not apply if a debt judgment is issued or acknowledged under a separate bond. 

Article 922 

Effect of Interruption 

The interruption of the prescription shall have no effect except for the person against whom the action interrupting its applicability is issued. 

Article 923 

Official Holidays 

If the maturity date of the bill of exchange corresponded to an official holiday, it shall not be allowed to claim payment thereof unless on the following working day. 

It shall not be allowed also to take any other action related to the bill of exchange, particularly, presenting it for acceptance or bringing protest in its respect unless on a working day.

Article 924 

Commencement of Dates 

The first day shall not be included in calculation of the legal or conventional dates. 

Article 925 

Courtesy Time Limits 

It shall not be allowed to grant any judicial or legal time limit as a courtesy. 

Article 926 

Interpretation 

The word (legal address) in this book shall be given to the work place also, in case of default, then it shall be given to domicile. The work (place of payment) shall be given also to the whole city and its suburbs. 

Section Two Promissory Note 

Chapter One Its Provisions 

Article 927 

Definition 

The Promissory Note: Is a written obligation according to terms defined by law. It includes undertaking a certain person called the executor to pay a certain amount of money on a certain date or subject to assignment to the order or to the permission of a person called the beneficiary. 

Article 928 

Basic Date of the Bond 

The Promissory Note contains the following data: 

1. Condition of the order, or expression of bond to the order to be written on the bond body in the language in which it has been written.
2. Undertaking not pending on a condition to pay a certain amount of money. 
3. Date of maturity. 
4. Place of payment. 
5. Name of the person to whom payment must be made or to his order (the beneficiary). 
6. Date and place of the bond origin. 
7. Signature of the person who originated the bond (the executor). 

Article 929 

The Bond Free from Some Data 

The bond which is free from one of the data mentioned in the previous article shall not be considered as a Promissory Note except in the cases shown in the following paragraph: 

1. The Bond which is free from mentioning the date of maturity shall be payable at sight. 
2. If the payment place is not mentioned, then the place to be mentioned beside the executorís name shall be considered as a place of payment and at the same time the legal address of the executor. 
3. The Bond which is free from mentioning the place of its origin shall be originated at the place shown beside the name of its executor. 

Article 930 

Applicability of Some Provisions of the Bill of Exchange to the Promissory Note 

The Provisions of the Bill of Exchange related to payment, revolving and recourse due to non-payment, protests, payment through interference, copies, distortion, prescription, official holidays, calculation of time limits and appointed times, precautionary attachment, difference of amount in letters and figures, signatures without authorization, consideration of the Bond as good as totally lost shall apply to the Promissory Note. The provisions related to the Bill of Exchange payable of the legal address of a third party or a place other than the place where the legal address of the executor is located, stipulation of the interest, as well as the provisions of the reserve guarantee shall apply to the Promissory Note. If the name of the guaranteed person is not mentioned in its form, it shall be considered in the favour of the executor inasmuch as not contradict the nature of the Bond. 

Article 931 

Obligations of the Bond executor and Date of Sight 

The Executor of the Promissory Note shall be considered under obligation of what is the Bill of Exchange acceptor abode by. The Bond payable after expiry of a certain period from the sight should be presented to the executor during the time appointed in Article (854) to endorse thereon to the effect that he has seen the same and to be dated and signed. Such appointed time shall start from the date of the said endorsement. 

If the executor refrained from putting the said endorsement, such refraining shall be confirmed by a protest which its date shall be the commencement of the validity of the sight duration. 

Chapter Two Common Provisions between the Bill of Exchange and Promissory Note 

Article 932 

Force of the Bill of Exchange and Promissory Note as Execution Bond 

The validity of the Bill of Exchange and the Promissory Note- even they are at sight or for a period after the sight ñ shall not depend on observation of provisions on stamp duty, provided that if the bonds were issued free from stamp duty or not paid within the legally established term they shall lose their capacity as executive bonds. 

The holder of either bond shall have no right to bring a lawsuit on the basis of the Bill of Exchange provisions. If he did not pay the stamp duties and the cash fine establish in its respect. The Court shall issue a judgment by invalidity of the Bill of Exchange or the Promissory Note as Executive Bond even automatically.

Article 933 

Interests due on the Bond and its Stamping 

If the Promissory Note or the Bill of Exchange is of maturity date of sight or for a period after sight and the necessity of interestís entitlement is mentioned in it, it should include the stamp duty ñ in addition to the original ñ the interestís amount which shall be calculated on the basis of the price shown on the bond. The interests may not be calculated for a period exceeding ten months. 

Section Three Cheques 

Chapter One Issuance and Form of the Cheque 

Article 934 

Essential Data of the Bank Cheque 

The cheque shall contain the following data: 

1. The word ìchequeî is included in the bond body in the language in which it is written. 
2. An order not pending on condition to pay a certain amount of money. 
3. Name of the person from whom the payment is required (drawee). 
4. Place of payment. 
5. Date and place of issue of the cheque. 
6. Signature of the person who issued the cheque (drawer). 

Article 935 

Effects of Non-Mentioning of Some Data 

If the cheque is free from one of the data set out in the previous Article, the cheque shall loss its valuation except in the following cases:

1. The place shown beside the name of the drawee shall be considered as a place of payment, if the cheque is free from mentioning a particular place. If the places shown beside the name of the drawee are multiple, the cheque shall be considered payable of the first place of them. 
2. If the cheque is free from such data, it should be paid at the place where it is issued. If the bank has no office in the said place, it should be paid where its Head Office is located. 
3. If the cheque is free from mentioning the place of issue, it shall be originated at the place referred to beside the drawer name. 

Article 936 

Non-Permissibility of Withdrawal of the Cheque to Other than the Banks 

The cheque may not be withdrawn except to banks. Although, the cheque which is payable abroad to other than the banks may be withdrawn. 

A cheque may not be issued except if the drawer has money which he shall dispose of with drawee through issuance of cheques according to an explicit or implicit agreement between them. Nevertheless, the Bond which shall be originated in breach of the mentioned condition shall loss the valuation of the cheque. 

Article 937 

Non-Acceptance on the Cheque 

Non-acceptance on cheque, and any indication of acceptance shall be considered as null and void. Nevertheless the drawee may make endorsement on the cheque to the effect that the balance is available for paying the cheque and preventing the drawer from disposing of the amount prior to presenting the cheque for payment. 

Article 938 

Identification of the Person Assigned to Receive the Cheque 

Payment of the cheque may be stipulated according to the following: 

1. To an assigned person with or without expression of (to the order). 
2. To an assigned person with expression of (not to the order) or the equivalent.

The cheque withdrawn in favour of a certain person on which the expression of (or to its bearer) or the equivalent is provided therein shall be considered as a cheque to its bearer. If the cheque is free from mentioning the beneficiary it shall be considered as a cheque to its bearer. 

Article 939 

Identification of the Beneficiary and Restrictions of Withdrawal 

The cheque may be withdrawn to the order of the drawer himself and the cheque may be withdrawn to its holder. 

The cheque may not be withdrawn on the drawer himself unless it is withdrawn between banks branches to be controlled by one head office. In this case the cheque may not be to (its holder). 

Article 940 

Prohibition of Interests 

Stipulation of any interests on the cheque shall be null and void. 

Article 941 

Place of Payment 

The cheque may be paid in a legal address of a third party either in the place of the drawee legal address or in other place where an institution replacing the bank is exist. 

Article 942 

Applicability of Some Provisions of the Bill of Exchange to the Cheque 

Provisions of Article (833, 834, 835, 836, 837 & 838) of the Bill of Exchange related to the validity of the amount, signature and its conditions shall apply to the cheque. 

Article 943 

General Power of Attorney in Fact 

The General Power of Attorney shall contain that one person shall abide himself in the name and to the credit of another person by the power of issuing and revolving cheques unless the contract of the Power of Attorney otherwise stipulated.

Article 944 

Payment Guarantee 

The responsibility of payment of the cheque shall fall on the drawer and any condition to the effect that he shall be exempted therefrom shall be null and void. 

Chapter Two Cheque Circulation 

Article 945 

Cheque Circulation 

The cheque which is issued in the name of a certain person shall be subject to circulation through revolving, even if the expression of (to the order) is not expressly mentioned. The cheque which is issued in the name of a certain person and restricted to a condition of (not to the order) or its equivalent may not be transferred except on the basis of the civil draft preserved in the Civil Law. 

The cheque may be revolved in the interest of the drawer himself or to another one of the persons committed thereto and they shall have the right to revolve it again. 

Article 946 

Revolving Restriction 

The revolving should be free from any condition. Any condition on which the revolving is pendent shall be considered null and void and any partial revolving shall be invalid. 

Revolving of the bearer shall be considered as a revolving on blank. 

Revolving of the drawee shall have the valuation of receipt only unless the drawee is a number of institutions and the revolving occurred in favour of one of them different from that on which the cheque is withdrawn.

Article 947 

Applicability of Provisions of the Bill of Exchange 

The provisions of the Bill of Exchange set out in the following Articles: (844, 845, 846, 847, 848, 849, 950 & 851) related to revolving and its effect, revolver guarantee, possession legitimacy, revolving restriction, applicability of the pleadings cleaning rule and consideration of dates and revolving (for receiving) shall apply to the cheque. 

Article 948 

Reserve Guarantee 

Payment of the cheque may be guaranteed by a reserve guarantee includes all or a part of the amount. The reserve guarantee includes all or a part of the amount. The reserve guarantee may be presented by one of the persons committed thereto or another person with exception of the drawee. The provisions of Articles (862, 863) shall apply to the cheque. 

Chapter Three Submission and Payment of the Cheque 

Article 949 

Cheque Payable at Sight 

The cheque shall be payable at sight and any statement indicating postponement of payment shall be invalid. The cheque which is presented for payment before the day shown therein as a date of issuance shall be payable on the date of its submission. 

Article 950 

Dates of Submission of the Cheque for Payment 

The cheque withdrawn in Great Jamahiriya and payable in it should be presented for payment within (20) twenty days. If it was withdrawn abroad and payable in it should be payable within (40) forty days. 

The above-mentioned dates shall start from the date shown in the cheque as a date of its issuance. 

Presentation of the cheque to one of the legally recognized clearing house shall be considered as a submission for payment.

Article 951 

Difference of Dates 

If a cheque is withdrawn between two countries having different calendar the day of issuance shall be replaced by the corresponding day in the calendar of the place of payment. 

Article 952 

Payment of Cheque after the Appointed Date 

The drawee should pay the cheque after the date appointed for its presentation unless the drawer raises an objection thereto. 

The objection of the drawer to payment of the cheque shall not be accepted except in case of its loss of bankruptcy of its bearer. 

Article 953 

Death of Bankruptcy or Disqualification of the Drawer 

The cheque shall neither lose its valuation nor its effects by the death or bankruptcy or disqualification of the drawer after issuance of the cheque. 

Article 954 

Effects of Payment and Partial Payment 

If the drawee paid the cheque he shall have the right to claim for delivering the same to him signed by the holder by clearance. 

The holder may not withhold acceptance of the partial payment, and he shall have the right to claim for payment of the available balance. If the drawerís balance is less than the cheque value and paid a part of its value, the drawee shall claim for indication thereof in the cheque and receipt of the paid amount. 

Any amount to be paid out of the original value of the cheque shall relieve the obligation of its drawer, revolvers and reserve guarantors, and the cheque holder shall bring protest for the remaining. 

Article 955 

Submission of various Cheques at One Time 

If various cheques were submitted at one time and the drawer balance was not enough to cover all of them, they shall be paid according to the dates of their issuance.

Article 956 

Sequence of Revolving 

Before payment of the cheque subject to revolving the drawee should verify the sequence of revolving and shall not be under obligation to confirm the validity of the revolver's signatures. 

Article 957 

Cheque Withdrawn in Foreign Currency or not Circulated in Great Jamahiriya 

If payment of the cheque is conditional in a currency not circulated in Great Jamahiriya its value may be paid on the date appointed for presentation in Libyan currency as per the current price on the day of payment. 

If payment is not made on the day of submission, the bearer shall opt between claiming the cheque value drawn at the Libyan currency price on submission day or payment day. 

If the cheque is submitted for payment for the first time after expiry of the appointed date for its submission, the consideration shall be at the price of the day on which the date of submission was expired. 

The practice of payment place shall specify the estimation of the foreign currency, but the drawer may stipulate calculation of the payable amount on the basis of the price set out in the cheque. 

The previous provisions shall not apply when the drawer stipulates payment of the cheque in a certain foreign currency. 

If the cheque amount is specified in a currency bearing joint nomination of a different value in the country of its issuance from its value in the country of payment, it is supposed that the payment shall be in the currency of the country of fulfillment. 

Article 958 

Responsibility for Payment of the False Cheques 

The drawer shall not be obliged to pay the cheques on which his signature is falsified even if paid by the bank on which it was drawn unless an error is confirmed against him. 

The drawer shall be particularly mistaken if he did not pay the attention of the normal person in keeping the forms of the cheques delivered to him.

Article 959 

Applicability of Some Provisions of the Bill of Exchange to the Cheque 

The provisions of the Bill of Exchange related to consideration of the cheque as totally lost, recourse lawsuit, prescription and reserve guarantee shall apply to the cheque. 

Chapter Four Lined Cheque and the Cheque Entered in the Account 

Article 960 

Definition and provisions of cheque crossing 

The cheque drawer or holder shall have the right to cross it, by putting two parallel lines on the front part of the cheque. The lining shall result in the effects shown in the following Articles. 

Lining is general and special 

The lining shall be considered general if no indication is set out between the two lines or the (World Bank) only is set out or any other work in this sense. It shall be considered special if the name of a certain bank and non-other is written between the two lines. 

The General Lining may be transformed into a special lining. The striking out of the lining or the bond name net out on it shall be considered as null and void. 

Article 961 

Modes of Payment of the Lined Bank 

The drawee may not make payment of the generally lined cheque unless to one of his clients or to a bank. 

The specially lined cheque may not be paid except to a certain bank or to one of its clients if the bank is the drawee. Nevertheless, the bank assigned for receiving shall entrust another to receive the cheque value under revolving by proxy.

The Bank may not obtain a lined cheque except from one of his clients or from another bank. It may not receive it also except to the credit of one of those persons. 

If the drawee did not observe the previous provisions he shall be under obligation to pay compensation at an amount not exceeding the cheque value. 

In provisions of the Article the word (Client) means any person having an account with drawee bank. 

Article 962 

Stipulation of Entry of the Cheque Value in the Account 

The drawer and holder of the cheque may prevent its payment in cash by putting the expression of (for entry in the account) or its equivalent on the back of the cheque. 

In this case, the cheque may not be settled by the drawee except through its entry in the records (Approval in account or transfer or clearing). 

Entry of the cheque in records replaces the payment. Any striking out of the expression of (for entry in account) shall be null and void. Non-observation of the said provisions by the drawee shall result in his responsibility for compensation for the damage at an amount not exceeding the cheque value. 

The drawee shall be under obligation to make entry to the person with whom he has an account. 

Article 963 

The Cheque Prohibited from Circulation 

Any conditional cheque may not be paid on issuance as considered (untransferable) or a like, in cash or by entry in account unless to the person to whom the cheque is issued in his name. 

The cheque may not be revolved except to a bank and on the basis of collection of its value. In this case the bank shall have no right to revolve it again. 

Any revolving breaches this prohibition shall be considered in valid as well as striking out of the expression of (untransferable). Anyone who paid a cheque prohibited from circulation to a person not assigned for receiving thereof or to bank not authorized to collect it, he shall be under obligation to repay the cheque. 

The bank may add the expression of (untransferable) to the bank if requested so by its client. 

The same expression may be added also by any of the revolver. This subsequent entry shall result in the same effect mentioned above. 

Article 964 

Application of Provisions of this Chapter 

The provisions of this chapter shall not apply except to the cheques payable inside Great Jamahiriya. 

Chapter Five Recourse for Non-Payment 

Article 965 

Confirmation of Non-Payment 

The cheque bearer shall have the right to recourse to the revolvers, drawer and other persons committed thereby if he presented it within the period decided for payment but its value is not paid. The abstention from payment shall be confirmed by one of the following methods: 

1. Official protest paper. 
2. Statement thereof to be issued by the drawee with mentioning the day and place of submission. 
3. Dated statement issued by the clearing house in which it shall be mentioned that the cheque has been submitted in a fixed time but its value is not paid. 

Issuance of the referred statement may not be withheld if required by the holder, even if the cheque includes the condition of recourse without expenses.

Article 966 

Terms of Confirmation of Non-Payment 

The abstention of payment must be confirmed by the means shown in the previous article prior to expiry of the appointed date for submission. If submission is effected on the last day of this appointed date, the abstention may be confirmed n the next working day. 

Article 967 

Provisions of the Bill of Exchange to be Applied to the Cheque 

The provisions of the Articles (887, 878, 879) related to the Bill of Exchange regarding notice of non-payment or exemption from bringing protest and responsibility of the persons committed thereby shall apply to the cheque. 

Article 968 

Rights Entitled to the Cheque Payer 

Anyone who paid the cheque shall have the right to claim his guarantors for the following: 

1. The amount paid out of the cheque value. 
2. Legally payable interests with effect from the payment day.
3. Expenses of the protest and all the incurred expenditures. 

Article 969 

Applicability of Provisions of the Bill of Exchange 

Provisions of the Articles (89, 882, 883, 886, 887, 888, 889, 891, 891, 892, 893, 894, 897, & 898) of this contract shall apply to the cheque inasmuch as not contradicting the nature of the cheque.

Chapter Six Multiplicity of Copies 

Article 970 

Issuance of Copies and its Conditions 

With exception of the cheque (to its holder) the cheque may be withdrawn in various copies corresponding to each other if they are withdrawn in a country and payable in another country or it was withdrawn and payable in a part of different parts of the country. 

If a cheque is withdrawn in more than one copy, the number of each copy should be put on its body, otherwise, each copy thereof shall be considered as separate cheque. 

Article 971 

Provisions of the Bill of Exchange Applying to the Cheque 

Provisions of Article (911) of this Law shall apply to the cheque. 

Article 972 

Applicability of Some Provisions of the Bill of Exchange to the Cheque 

Provisions regarding consideration of the Bill of Exchange as good as lost as well the provisions of distortion shall apply to the cheque. 

But as regards prescription, the appointed times established to the Bill of Exchange shall be applied with reduction of the duration of prescription of the Lawsuit of recourse of the holder to the revolver to six months. 

Article 973 

Interpretation 

In this section the word (bank) means any person or financial institution performs licensed banking works and the word of (legal address) means also the domicile and the expression of (payment authority) (or place of payment) shall means the whole city.

Article 974 

General Provisions 

The provisions of the Bill of Exchange related to official holidays, non- permissibility of granting judicial or legal time limit for courtesy and commencement of validity of the appointed times shall apply to the cheque. 

Article 975 

Abstention of the Bank 

The bank shall be penalized by a fine not less than (LD 500) five hundred Libyan Dinars if one of the following acts is intentionally committed: 

1. Declaration contrary to the truth that the cheque has no balance or there is insufficient balance. 
2. Refusal, in bad faith, to pay a cheque having full or partial balance and a true objection is not submitted in its respect. 
3. Abstention from putting or delivering the statement referred to in paragraph (2) of the Article (965). 
4. Abstention without reason from endorsing the cheque or giving the equivalent of the certified cheque. 

The same penalty shall be applied to the natural responsible person who committed the acts provided for the previous paragraph or an order of their commitment is issued. 

Chapter Seven Periodical Cheque 

Article 976 

Conditions of Issuance 

The periodical cheque is a credit bond (to the order) to be issued by one of the exchange institutions authorized to do so, for amounts not exceeding in their total the balances available to it at the time of the issuance. 

The periodical cheque is payable at sight by all the authorities concerned with payment.

The institution which is licensed to issue periodical cheques must form an appropriate balance to ensure payments of the cheques which it shall issue according to the provisions set out in the license. 

Article 977 

Particulars of the Periodical Cheque 

The periodical cheque shall contain the following particulars: 

1. Name (periodical cheque) to be written on the bond body. 
2. Unconditional undertaking to pay a certain amount of money. 
3. Name of the institution from which the cheque is issued. 
4. Date and place of issue. 
5. Signature of the institution. 

If the periodical cheque is free from one of these particulars it shall lose its capacity. 

Article 978 

Prescription Period 

He right of the cheque holder to bring the recourse lawsuit shall be lapsed if he did not present it for payment within (40) forty days from its issuance. The right to bring a lawsuit against the institution shall be prescribed after expiry of three years from the date of its issue. 

Resolving of the cheque to the issuing institution or one of its branches shall render it cancelled. 

Article 979 

Power of Attorney to issue Periodical Cheques 

The periodical cheques may be issued by a power of attorney as far as the attorney in fact is a bank or its branch.

Article 980 

Applicability of Provisions of the Banking Cheque and provisions of the Bill of Exchange 

The provision of the Bill of Exchange regarding revolving, payment, protest, recourse, prescription, falsification, legal capacity shall apply to the periodical cheque. The provisions of the banking cheque regarding shortness and restriction of circulation shall apply to it also, as long as they shall not contradict the nature of the periodical cheque. 

Chapter Eight Travelerís Cheques 

Article 981 

Definition 

The Travelers Cheque, is a bond to be issued by a bank or a financial institution authorized to do so after being signed by the purchaser in the presence of the official authorized by the issuing authority. 

Article 982 

Cheque Payment Conditions 

The Travelers Cheque shall not be paid unless it borne on its face two conform signatures to whom the cheque is issued. 

Article 983 

Provisions ought to be Applied 

The relationship between the travelers cheque issuer and to whom it was issued shall be governed by the purchasing document items in as much as not contradicting the traditions and practices applicable in this concern.