ance or nonpayment in order to exercise his right of recourse. Nevertheless, the holder so released is not freed from presenting the bill within the prescribed time nor from giving notice of dishonor to his indorser and the drawer. The burden of proving the failure to observe the periods of limitation must be borne by the person who sets them up against the holder.

When the drawer inserts this stipulation it takes effect as regards all parties who have signed the bill. If, in spite of this provision. the holder makes protest, he must bear the expenses thereof. But when an indorser inserts this provision, the expenses of a protest, if made, can be recovered from all the parties who signed the bill.

Liability of parties. All persons who have drawn, accepted, indorsed, or guaranteed by "aval" a bill of exchange are jointly and severally liable to the holder. The holder may proceed against these parties individually or collectively, irrespective of the order in which they became bound. This same right belongs to every party to the bill who has taken it up. Proceedings brought against one of the parties liable do not prevent bringing action against the others, though they may be subsequent to the person first proceeded against. The holder may recover from the party whom he sues:

1. The amount of the unaccepted or unpaid bill of exchange with interest, if interest has been provided for.

2. Interest at the legal rate from the date of maturity.

3. The expenses of protest and of the notices given by the holder to his immediate indorser and the drawer, as well as other expenses.

4. A commission which, in default of agreement, shall be one-sixth of 1 per cent on the principal sum payable by the bill and which in no case can exceed this rate.

If the right of recourse is exercised before maturity, the amount of the bill shall be subject to a discount. This discount may be calculated at the holder's option, either according to the official or bank rate or according to the market rate prevailing at the time when, and at the place where, the holder demands payment.

A party who takes up and pays a bill of exchange can recover from the parties liable to him:

1. The entire sum that he has paid.

2. The legal rate of interest on that sum beginning from the date of purchase.

3. The expenses he has incurred.

4. A commission on the principal sum of the bill of exchange, which can not exceed one-sixth of 1 per cent.

When demand is made against any party to the bill he can require, upon payment, that the bill be delivered to him with the protest and receipted account. Every indorser who has repurchased the bill may cross out his own indorsement and those of his successors.

Where recourse is exercised after a partial acceptance the person paying the nonaccepted part of the amount of the bill can require that his payment be indicated on the bill and that he be given a receipt. The holder must also give him a certified copy of the bill, together with the protest, in order to facilitate his subsequent right of recourse.

In the absence of an agreement to the contrary, every person having a right of recourse may reimburse himself by means of a fresh bill (redraft) drawn at sight on one of the parties liable to him. The redraft includes, in addition to the amount of the bill, stipu

lated or legal interest, expenses, commission, the cost of brokerage. and of the stamp of the redraft. If the redraft is drawn by the holder, the sum payable is fixed according to the exchange for a sight draft drawn on the place where the original draft was payable, upon the place where the party liable resides. If an indorser draws the redraft, the sum payable is fixed according to the exchange for a sight draft at the place where the drawer of the redraft resides. drawn upon the place where the party liable resides.

The holder loses his rights of recourse against the indorsers. drawer, and other parties liable, with the exception of the acceptor. when he permits to expire the limits of time which are fixed for (1) the presentment of a sight bill or one drawn at a certain time after sight; (2) the drawing up of the protest for nonacceptance or nonpayment; and (3) presentment for payment in the case of a stipulation "without costs.'

In default of presentment for acceptance within the limit of time stipulated for by the drawer, the holder loses his right of recourse for nonpayment, as well as for nonacceptance, unless it appears from the terms of the stipulation that the drawer only meant to release himself from the guaranty of acceptance. If an indorser has stipu lated a time limit for presentment, only he can avail himself of it.

Unavoidable delay in presentment and protest.-When insurmountable obstacles, usually known as cases of vis major, acts of God, or circumstances over which there is no control, prevent the presentment of a bill of exchange or drawing up the protest within the prescribed time limitations, these limitations are prolonged. The holder must without delay give notice of the case of vis major to his immediate indorser and indicate this notice, with place, date, and signature on the bill itself or on an "allonge," a separate sheet appended thereto. Related matters are attended to in the way prescribed above under the heading "Notification."

When the vis major has ceased--the obstacle removed-the holder must without delay present the bill for acceptance or payment and. if necessary, make protest. If the vis major continues to operate for more than 30 days after the maturity of the bill, payment may be demanded without presentment or protest. In the case of bills payable at sight or a certain time after sight, the term of 30 days begins to run from the date on which the holder has given notice of the vis major to his immediate indorser, even though this date be before the time for presentment Vis major does not include factpurely personal to the holder or to the person whose duty it is to make presentment or protest.

INTERVENTION FOR HONOR

This part deals with the referee in case of need and with the subject of acceptance and payment for honor and differs from the negotiable instruments law in allowing a "third party, even the drawee, or a party already liable on the bill, except only the ac ceptor," to intervene. The drawer or an indorser may specify a person who is to accept or pay in case of need. The intervener must give, without delay, notice of his intervention to the party for whom he has intervened.

Acceptance by intervention.-There may be acceptance by intervention in all cases where demand for payment is made before maturity, except where the particular bill is prohibited from being presented for 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 allows the acceptance, he loses his right of recourse before maturity against the parties liable to him. The intervener specifies acceptance by intervention on the bill of exchange and signs it, and unless the notation indicates the party for whose account intervention is made the acceptance will be 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 that party. In spite of an acceptance by intervention, the party for whose honor it is given and the parties liable to him can require the holder, in exchange for the payment of the amount of the bill, stipulated or legal interest, costs, and commission, to give up the bill, and the protest, if any.

Payment by intervention.-Unlike Anglo-American law, which does not limit the time for payment by intervention, the Polish law states that payment for honor, which may take place in all cases where either before maturity or after maturity the holder has a right of recourse, must be made at the latest on the last day allowed for drawing up the protest for nonpayment.

If a bill has been accepted by intervention, or if persons have been specified to pay it in case of need, the holder must present the bill at the place of payment to all these persons, and, if it is necessary, cause a protest for nonpayment to be drawn up at the latest on the day following the last day for drawing up the protest. If protest is not entered within this 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 by intervention must include the entire sum which the party for whom it was made. would have had to pay; that is, the amount of the bill, agreed or legal interest, and costs, but not including a commission. The holder who refuses this payment loses his right of recourse against those who would have been discharged thereby.

Authentication of the payment by intervention must be made by a receipt noted on the bill, which specifies for whom payment has been made. If no person is indicated, payment will be deemed to have been made for the drawer. Moreover, when the payment by intervention has been made, the bill of exchange and the protest, if any, must be delivered to the intervener.

The intervener is subrogated to the rights of the holder against the party for whom he has paid and against the parties liable to him. He may not, however, further negotiate the bill. The indorsers subsequent to the party for whom payment has been made are discharged. If several persons desire to pay by intervention, preference is given to the one whose payment will release the greater number of parties liable. If this rule is not observed, the intervener with notice loses his right of recourse against those who would have been discharged.

PARTS OF A SET AND COPIES

Parts of a set.-The Polish law provides that every holder of a bill which does not specify that it has been drawn as a single bil may, at his own expense, require the delivery of two or more parts. For this purpose the holder must have his immediate indorser help him in proceeding against the latter's indorser, and so on in the series until the drawer is reached. The indorsers are bound to reproduce their indorsements on the new parts of the set.

When a bill of exchange is drawn in a set-that is, with two or more identical parts-these parts must be numbered in the body of the instrument. Otherwise, each part is considered as a separate bill of exchange.

Payment made on one part of a set operates as a discharge, even though there is no stipulation that such payment invalidates the other parts. Nevertheless, the drawee is liable on each accepted part which he has not recovered back. The indorser who has transferred parts of a set to different persons and the subsequent indorsers are all liable on the parts bearing their signatures which have not been recovered.

A party who has sent one part for acceptance must indicate on the other parts the name of the person in whose hands this part will be found, and that person is bound to give it up to the lawful holder of another part. If the former refuses, the lawful holder can not demand payment until after he has had a protest drawn up, stating (1) that the part sent for acceptance has not been given up to him on his demand, and (2) that acceptance and payment could not be obtained on another of the parts.

Copies. While the negotiable instruments law contains no such provision the Polish law gives to every holder of a bill the right to make copies of it. The copy must reproduce the original exactly, with the indorsements and all other statements to be found thereon, and should state the purpose for which it is made. It may be indorsed and guaranteed by "aval" in the same manner as the original.

The copy must indicate the person in possession of the original. This person is bound to hand over the original instrument to the lawful holder of the copy; but if he refuses the holder of the copy can not exercise his right of recourse against the indorsers of the copy until he has a protest drawn up stating that the original has not been given up to him on his demand.

FORGERY AND ALTERATIONS

The forgery of a signature, even though it be that of the drawer or acceptor, has no effect upon the validity of the other signatures. If the text of a bill of exchange has been altered in any way, parties who have signed subsequent to such alteration are bound according to the text as it stands. The original text, however, is binding on those parties who signed before the alteration.

PRESCRIPTION

The Polish law declares that claims against the acceptor of a bill are prescribed by the lapse of three years, counting from the date of maturity. The holder may bring suit against the indorsers

and drawer only within the year running from the date of protest which has been made in proper time, or, if there is a stipulation "without costs," from the date of maturity. Indorsers may have recourse against each other and against the drawer only within the period of six months after the day when the indorser paid the bill or from the day when he himself was sued.

Prescription may only be suspended (1) by filing complaint: (2) by a declaration that the claim arising from the bill is to be settled by special agreement or in bankruptcy proceedings; (3) by announcing the dispute or by the appeal of the party sued; and (4) by a written recognition of the claim.

Prescription may commence to run again (1) in the case of a suit from the date of the closing thereof; (2) in the case of a special agreement or bankruptcy from the time of the conclusion thereof and in the case of a denial of the debt as declared from the moment of denial; (3) in the case of announcement of the dispute or a lawsuit from the date of the conclusion thereof; and (4) in the case of a recognition from the date of such recognition.

Prescription is suspended only in regard to the debtor concerned with the cause of suspension.

UNJUST ENRICHMENT

An equitable principle is found in article 75 of the Polish law, which is not contained in the uniform regulations of The Hague nor in the negotiable instruments law. This rule is that where the liabilities of the drawer and acceptor have been prescribed or have lapsed through failure to protect the holder's rights these parties are nevertheless liable to the holder if they have been unjustly enriched at his expense. Such claims are barred by the lapse of three years after the date when the bill of exchange becomes invalid.

GENERAL REGULATIONS

Any person having the capacity to contract may be a party to a bill of exchange. Illiterate persons and those unable to write may substitute for their signature a sign, which must be made on the bill itself according to existing regulations.

If maturity falls on a legal holiday, payment may be demanded on the following business day. All other transactions connected with bills of exchange, such as presentation for acceptance and protest, may only be effected on business days. If the last day of a fixed period for performance of some transaction falls on a legal holiday, the term is prolonged to the next succeeding business day. Holidays falling in an established period are counted in it, with the exception of the special provisions made for presentment, protest, and notification. The first date of a period is not counted. Days of grace are not allowed.

CONFLICT OF LAWS

While the negotiable instruments law contains no provisions on this subject, the Polish law has four articles governing the conflict of laws. Article 80 prescribes that the capacity of a person for drawing bills is measured according to the laws of the State of