CHAPTER IV. - Rights And Liabilities

Section `2. - Liabilities of the parties

G. - The guarantor

278

Article `47

279

1. The liability of a guarantor on the instrument is of the same nature as that of the party for whom he has become guarantor.

280

2. If the person for whom he has become guarantor is the drawee, the guarantor engages:

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(a) To pay the bill at maturity to the holder, or to any party who takes up and pays the bill;

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(b) If the bill is payable at a definite time, upon dishonour by non-acceptance and upon any necessary protest, to pay it to the holder, or to any party who takes up and pays the bill.

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3. In respect of defences that are personal to himself, a guarantor may set up:

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(a) Against a holder who is not a protected holder only those defences which he may set up under paragraphs`1, 3 and`4 of article`28;

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(b) Against a protected holder only those defences which he may set up under paragraph`1 of article`30.

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4. In respect of defences that may be raised by the person for whom he has become a guarantor:

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(a) A guarantor may set up against a holder who is not a protected holder only those defences which the person for whom he has become a guarantor may set up against such holder under paragraphs`1, 3 and`4 of article`28;

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(b) A guarantor who expresses his guarantee by the words "guaranteed", "payment guaranteed" or "collection guaranteed", or words of similar import, may set up against a protected holder only those defences which the person for whom he has become a guarantor may set up against a protected holder under paragraph`1 of article`30;

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(c) A guarantor who expresses his guarantee by the words "aval" or "good as aval" may set up against a protected holder only:

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(i) The defence, under paragraph`1`(b) of article`30, that the protected holder obtained the signature on the instrument of the person for whom he has become a guarantor by a fraudulent act;

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(ii) The defence, under article`53 or`article`57, that the instrument was not presented for acceptance or for payment;

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(iii) The defence, under article`63, that the instrument was not duly protested for non-acceptance or for non-payment;

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(iv) The defence, under article`84, that a right of action may no longer be exercised against the person for whom he has become guarantor;

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(d) A guarantor who is not a bank or other financial institution and who expresses his guarantee by a signature alone may set up against a protected holder only the defences referred to in subparagraph`(b) of this paragraph;

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(e) A guarantor which is a bank or other financial institution and which expresses its guarantee by a signature alone may set up against a protected holder only the defences referred to in subparagraph`(c) of this paragraph.

UNCITRAL Convention on International Bills of Exchange and International Promissory Notes, 1988

CHAPTER I. - Sphere Of Application And Form Of The Instrument

CHAPTER II. - Interpretation

Section 1. - General provisions

Section 2. - Interpretation of formal requirements

Section 3. - Completion of an incomplete instrument

CHAPTER III. - Transfer

CHAPTER IV. - Rights And Liabilities

Section 1. - The rights of a holder and of a protected holder

Section `2. - Liabilities of the parties

A. - General provisions

B. - The drawer

C. - The maker

D. - The drawee and the acceptor

E. - The endorser

F. - The transferor by endorsement or by mere delivery

G. - The guarantor

CHAPTER `V. - Presentment, Dishonour By Non-Acceptance Or Non-Payment, And Recourse

Section `1. - Presentment for acceptance and dishonour by non-acceptance

Section `2. - Presentment for payment and dishonour by non-payment

Section `3. - Recourse

A. - Protest

B. - Notice of dishonour

Section 4. - Amount payable

CHAPTER VI. - Discharge

Section 1. - Discharge by payment

Section 2. - Discharge of other parties

CHAPTER VII. - Lost Instruments

CHAPTER VIII. - Limitation (Prescription)

CHAPTER IX. - Final Provisions

[Post Provisions]

Annex - Explanatory Note by the UNCITRAL Secretariat on the United Nations Convention on International Bills of Exchange and International Promissory Notes *[NOTE]

B. - Salient Features Of The Convention

Notes

Endnotes

Metadata

Manifest

CHAPTER IV. - Rights And Liabilities

Section `2. - Liabilities of the parties

G. - The guarantor

Article `47