Protesting a bill of exchange

A statement issued by an authorized official stating that the promissory note was presented for payment at maturity to the direct debtor of the bill of exchange, who refused to cash the bill of exchange, i.e. pay.

As a promissory note holder (beneficiary or last draftee), we can access the amount of the bill of exchange at three times. At the earliest, before the maturity of the bill of exchange, by discounting. After that, at the time of payment. In the case of a bill of exchange for sight (viewing), at any time during its presentation within one year. (In the case of a bill of exchange, it is never the debtor who visits the creditor, but always the primary debtor of the bill of exchange or the bank designated by him on the bill of exchange, the so-called settler.) 

The third and most unpleasant case is when we receive the amount of the bill of exchange after the expiration date. If the direct debtor note debtor has not paid the promissory note at maturity, a claim for compensation can be asserted as the holder of the promissory note against the transferors of the promissory note, the issuer in the case of acceptance and all other promissory note holders who have signed the promissory note anywhere (for example, as guarantor of the promissory note).

Refusal to accept a acceptance of a bill of exchange or to pay must be certified by a public document. The latter is called caution due to lack of acceptance or payment. According to most national probate laws, the taking of a caution or caution is also a prerequisite for starting probate proceedings. The deposit must be taken on one of the two working days following the day of missed payment.  

In order to receive the protection, we have to visit an official person, usually a notary public, who issues the official deed. However, the warning can be replaced by a statement written on the promissory note itself and bearing the date and signature of the drawee or the third person making the payment. An exception to this is if the issuer requires a common-law clause in the text of the bill of exchange. 

Notification obligations according to the Bill of Exchange Act also come into effect at the same time as the protection. In the course of this, all obligees of the promissory note will be informed within the prescribed time limit and in the prescribed order that the promissory note has not been paid or only partially paid by the direct debtor note debtor, thus their payment obligation assumed by their signature on the promissory note will come into force:

The notary himself notifies the obligees of the bill of exchange of the notary. Of course, we have to bear the costs of warning and notification. 

If the security is replaced by a statement written on the drawer/issuer of a bill of exchange of the promissory note did not require the inclusion of a security on the promissory note, we, as the holder of the promissory note, must notify the promissory note holder from whom we directly received the promissory note of the lack of acceptance or payment within four working days. This person can be a promissory note transferor, in our case the last back-end shooter or the issuer. If the bill of exchange note is a bill of exchange note, i.e. a promissory note on which someone has signed a unconditional guarantee for the payment of the bill of exchange, then the guarantor must also be notified.

In the case of a turned bill of exchange note, the promissory note assignor notified by us (within two working days after receiving the notification) notifies the actor who assigned the promissory note to him. This line continues all the way to the issuer.

As a holder of a bill of exchange (beneficiary or final drawee), it is important that the drawer/issuer of a bill of exchange, acceptor, transferors and guarantors of the bill of exchange are jointly and severally obliged to repay the amount of the bill of exchange. In the event of non-payment by the primary debtor, payment of the amount of the bill of exchange can be requested from any of the promissory note from the debtor, regardless of the order of their commitments. The same right applies to the promissory note holder who reimbursed the amount of the bill of exchange note to us (i.e. redeemed the promissory note). The promissory note holder, against whom we asserted the claim for reimbursement, may demand from us the promissory note, the guarantee and the document proving the fact of payment against repurchase. 

As a holder of a bill of exchange, when asserting a claim for compensation, we can request not only the unaccepted or unpaid amount of the bill of exchange and late payment interests calculated from the due date. A bill of exchange costs of one percent, calculated on the amount of the bill of exchange, can also be demanded at the time of payment.