Bills of Exchange: Creation, Form, Endorsement, and Payment
Chapter II: In the Bill of Exchange
Section One: Creation, Form, and Endorsement
Article 76
The bill of exchange must contain:
- The term “bill of exchange” inserted in the document;
- The place and date (day, month, and year) of subscription;
- The unconditional order to the drawee to pay a certain sum of money;
- The name of the drawee;
- The place and time of payment;
- The name of the person to whom payment is to be made; and
- The signature of the drawer or the person who signed at their request or on their behalf.
Article 77
If the bill of exchange does not designate the place of payment, it shall be deemed to be the drawee’s domicile. If the drawee has several domiciles, the bill may be presented at any of them, at the holder’s option.
If the bill indicates several places of payment, the holder may present it at any of the mentioned places.
Article 78
Any stipulation of interest or penalty in a bill of exchange shall be deemed unwritten.
Article 79
The bill of exchange can be drawn:
- At sight;
- A certain time after sight;
- A certain time after date; and
- On a fixed day.
Bills of exchange with other maturity terms or successive maturities shall be deemed payable on demand for the total amount expressed. Bills of exchange without a maturity date indicated shall also be considered payable on demand.
Article 80
A bill of exchange drawn at one or more months from date or sight matures on the corresponding day of the month of payment. If there is no corresponding day, it matures on the last day of the month.
If the maturity is set at the beginning, middle, or end of the month, these terms shall mean the first, fifteenth, and last day of the respective month.
Expressions such as “eight days”, “a week”, “two weeks”, “a fortnight”, or “half a month” shall be understood not as one or two whole weeks, but as eight or fifteen actual days, respectively.
Article 81
When any act required of the holder falls on a non-working day, the deadline extends to the next working day. Intermediate legal holidays shall be counted. The starting day is not included in legal or conventional terms.
Article 82
A bill of exchange can be drawn to the order of the drawer.
It can also be drawn by the drawer, payable at a place different from where it is issued. In this case, the drawer is liable as acceptor. If drawn a certain time after sight, presentation fixes the maturity date, observing the date of presentation as per Article 98.
Presentation is verified by the drawer’s visa on the bill or by affidavit before a notary or broker.
Article 83
The drawer may designate payment at the domicile or residence of another person, in the same place as the drawee or elsewhere. If the bill does not indicate payment by the drawee, it is understood to be payable by the designated party, considered a simple acceptance service.
The drawer may also indicate their domicile or residence for payment, even if different from the drawee’s.
Article 84
The drawer and any obligor may indicate a person or persons to be presented with the bill for acceptance and payment, or only payment, in the drawee’s absence, provided their domicile or residence is in the place designated for payment, or, if no place is designated, in the drawee’s domicile.
Article 85
Authority to act on behalf of another does not include the power to draw bills of exchange, except as provided in the power of attorney or declaration referred to in Section 9.
Administrators or managers of companies are deemed authorized to sign bills of exchange on their behalf, within the limits of their statutes or authorities.
Article 86
If the drawer cannot write, another person may sign at their request, witnessed by a public corridor, notary, or other official with legal authority.
Article 87
The drawer is responsible for acceptance and payment. Any clause exempting them from liability is deemed unwritten.
Article 88
A bill of exchange issued to bearer is subject to Article 14. If the bearer delivers it with a special endorsement or to a specific person, the term “bearer” is null and void.
Article 89
Terms like “Documents against acceptance” (D/A) or “Documents against payment” (D/P) require the holder to release accompanying documents only upon acceptance or payment.
Article 90
Endorsement makes the endorser jointly and severally liable for the bill’s value, observing Article 34.