Thailand Law Library

by Thailand Lawyer

Chapter 2: Bills of Exchange

The drawer or an endorser may specify a person who is to accept or pay in case of need at the place of payment.

A bill of exchange may, under the conditions hereafter set forth, be accepted or paid by a person who intervenes for any person who has signed it.

The intervener may be a third person, even the drawee, or the person already liable on the bill, except only the acceptor.

The intervener is bound to give without delay notice of his intervention to the party for whom he has intervened.

There may be acceptance by intervention in all cases where the holder has the right of recourse before maturity on a bill which is capable of acceptance.

The holder may refuse an acceptance by intervention, even when it is offered by a person designated to accept or pay in case of need.

If he permits the acceptance, he loses his right of recourse before maturity against the parties liable to him.

Acceptance by intervention is specified on the bill of exchange. It is signed by the intervener. It specifies for whose account it has been given, and in default of this specification the acceptance is deemed to have been given for the drawer.

The acceptor by intervention is liable to the holder and to the indorsers subsequent to the party for whose account he intervened in the same manner as the latter.

Payment for honor may take place in all cases where either at maturity or before maturity the holder has the right of recourse.

At the latest it must be made on the day following the last day allowed for drawing up the protest for non-payment.

If a bill of exchange has been accepted for honor, or if persons have been specified to pay it in case of need, the holder must at the place of payment present the bill to all these persons, and, if need be, cause a protest for non-payment to be drawn up at the latest on the day following the last day for drawing up the protest.

In default of protest within this limit of time, the party who has indicated the case of need, or for whose account the bill has been accepted, and the subsequent indorsers are discharged.

Payment for honor must include the whole sum which the party for whom it is made would have had to pay, with the exception of the commission provided for by Section 968 (4).

The holder who ref uses this payment loses his right of recourse against those who would have been discharged thereby.

Payment for honor must be authenticated by a receipt given on the bill of exchange specifying for whom payment has been made. In default of this specification, payment is deemed to have been made for the drawer.

The bill of exchange and the protest, if the protest has been drawn up, must be handed over to the person paying for honor.

The person who pays for honor is subrogated to the rights of the holder against the party for whom he has paid, and against the parties liable to him. Nevertheless he cannot indorse the bill of exchange afresh. Endorsers subsequent to the party for whom payment has been made are discharged.

In case of competition for payment for honor, the payment which effects the greater number of releases has the preference.

If this rule is not observed, the payer who has notice loses his right of recourse against those who would have been discharged.