BASIC EXPLANATIONS OF LEGAL CONCEPTS ON THE LAW LAW ON NEGOTIABLE NEGOT IABLE INSTRUMENTS I NSTRUMENTS LAW LAW (ACT NO. 2031) Intro!"t#on T$% N%&ot#'% In*tr!+%nt* L', #* -%"!#'r ' "r%'t!r% o/ t$% ', +%r"$'nt /ro+ ,$#"$ #t ,'* #+-ort% #+-ort% #nto En&'n En&'n 'n "r*t'#% "r*t'#% #n t$% En&#*$ "o++on "o++on ',. It ,'* "o#/#% "o#/#% #n t$'t "o!ntr "o!ntr #n 12 ,$'t #* no,n '* t$% B#* o/ E4"$'n&% E4"$'n&% A"t. A"t. In t$% Un#t% Un#t% St't%* St't%* t$%r% ,'* ,'* -r#or -r#or to t$% r'/t# r'/t#n& n& o/ t$% N%&ot# N%&ot#' '%% In*tr! In*tr!+% +%nt* nt* L', L', ' "o#/#"'t#on o/ t$% ', #n *o+% *t't%* !t t$%r% ,'* not$#n& oo#n& to,'r '* "o#/#"'t#on /or ' t$% *t't%* *t't%* #n !n#on. In 156 ' r'/t ,'* '--ro7% '--ro7% t$% Co++#**#on% Co++#**#on%r* r* on t$% Un#/or+ St't% L',* #n t$% Un#t% St't%* r%-r%*%nt#n& n#n%t%%n (15) *t't%* r%'t#7% to ' "o#/#"'t#on o/ ',* r%'t#n& to #* 'n not%*. In t$% P$##--#n%* #t ,'* on F%r!'r 3 1511 ,$%n A"t 2031 ,'* %n'"t% 'n too %//%"t n#n%t '* '/t%r #t* -!#"'t#o -!#"'t#on n #n t$% o//#"#' o//#"#' &'%tt%. T$% %//%"t#7#t o/ *'# ', "o++%n"% "o++%n"% on 8!n% 2 1511. 1511. C$'r'"t%r o/ t$% N%&ot#'% In*tr!+%nt* o/ L', 1. T$% ', ', %+r'"%* %+r'"%* *!*t'nt#7 *!*t'nt#7%% 'n 'n '9%"t# '9%"t#7% 7% ',. ',. 2. T$% '--#"' '--#"'t#on t#on #* %4"!*# %4"!*#7%. 7%. M%'n#n& M%'n#n& to *' *' #t "o7%r* "o7%r* n%&ot#' n%&ot#'% % #n*tr!+ #n*tr!+%nt* %nt* on. T$% C#7# Co% &o7%rn* t$% -ro7#*#on* -ro7#*#on* on n%&ot#'% n%&ot#'% o"!+%nt o/ t#t%. F!n"t#on* o/ N%&ot#'% In*tr!+%nt*. T$% 'r% ' *!*t#t!t% /or +on% 'n #n"r%'*% t$% -!r"$'*#n& +%#!+ #n "#r"!'t#on. Ot$%r,#*% +or% *-%"#% or -'-%r +on% ,o! % n%%% #n "#r"!'t#on to t'% "'r% o/ %7%r' !*#n%** tr'n*'"t#on*. tr'n*'"t#on*. M'n "!*to+%r* o/ +%r"$'nt* +%r"$'nt* -' t$%#r +ont$ #* #* "$%" "$%"* * 'n 'n +'n! +'n!/' /'"t "t!r !r%r %r** ,$%n ,$%n !n' !n'% % to ot' ot'#n #n "'*$ "'*$ /ro+ /ro+ t$%# t$%#rr "!*t "!*to+ o+%r %r* * t'% t'% -ro+#**o -ro+#**or r not%* not%* '""%-t% '""%-t% #* #* tr'% '""%-t'n"%* '""%-t'n"%* or *o+% /or+ o/ "o++%r"#' "o++%r"#' -'-%r ,$#"$ t$%#r 'n ,# #*"o!nt 'n t!rn #nto +on% /or t$%#r -'ro*. -'ro*. T$!* t$% n%&ot#'% #n*tr!+%nt* o-%r't% to *!--%+%nt t$% "!rr%n" "!rr%n" o/ t$% &o7%rn+%nt. &o7%rn+%nt. T$% "$%" #* !*% !*% '* #++%# #++%#'t% 't% -'+% -'+%nt nt ,$#% ,$#% t$% or#n' or#n'r r # # o/ %4"$'n %4"$'n&% &% 'n t$% -ro+# -ro+#**o **or r not% not% 'r% 'r% #nt%n% /or "#r"!'t#on o/ "r%#t. In &%n%r' n%&ot#'% #n*tr!+%nt* 't$o!&$ t$% o not "on*t#t!t% %&' t%n%r (1) t$% 'r% !*% '* *!*t# t$% *!*t#t!t% t!t% o/ +on% +on%.. (2) T$% T$% "on*t# "on*t#t!t t!t%% 't t$% -r% -r%*%n *%nt t t$% +%#' +%#' o/ %4"$'n %4"$'n&% &% /or +o*t "o++ "o++%r" %r"#' #' tr'n*' tr'n*'"t# "t#on* on* 'n (3) t$% t$% *%r7% *%r7% '* ' +%#!+ +%#!+ o/ "r% "r%#t #t tr'n*'"t#on. P'+%nt N%&ot#'% In*tr!+%nt*. S#n"% ' n%&ot#'% #n*tr!+%nt #* ' *!*t#t!t% o/ +on% t$% :!%*t#on 'r#*%* '* to ,$%t$%r or not t$% #n& or t'#n& o/ ' -ro+#**or not% or # o/ %4"$'n&% #* -r#+' /'"#% '*o!t% -'+%nt '* #n t$% "'*% o/ +on% or +%r% +%r% ' -r#+' /'"#% "on#t#on' -'+%nt. -'+%nt. T$% r!% #* t$'t “ the delivery of negotiable instruments shall produce payment only when they have been cashed, or when through the act of the creditor, they have been impaired.”(Art.. 124, !ew "ivil "ode# In t$% +%'nt#+% t$% '"t#on '"t#on %r#7% /ro+ t$% or#&#n' o#&'t#on o#&'t#on *$' % $% #n '%'n"%. T$% T,o (2) Pr#n"#-' F%'t!r%* o/ N%&ot#'##t. 1. N%&ot# N%&ot#'# '##t #t. . It #* t$'t t$'t 'ttr# 'ttr#!t% !t% or -ro -ro-%r -%rt t ,$%r% ,$%r% ' # # not% not% or "$%" "$%" -'**%* or +' -'** /ro+ $'n to $'n *#+#'r to +on% *o '* to % t$% $o%r #n !% "o!r*% t$% r#&$t to $o t$% #n*tr!+%nt 'n "o%"t t$% *!+ -''% to $#+*%/ $#+*%/ /r%% /ro+ /ro+ %/%n*%. %/%n*%. T$!* +%n +%n #n t$#* ,' ,#t$o!t "'*$ "'*$ #n $'n 'r% %n' %n'% % +%'n +%'n** o/ "r% "r%#t #t to "on "on!" !"tt 'n 'n "'rr "'rr to "o+"o+-% %t# t#on on !*# !*#n% n%** ** %nt%r-r#*%* !-on t$%#r -ro+#**or not%* #* o/ %4"$'n&% 'n "$%"* no,#n& t$'t ot$%r !*#n%** !*#n%**+%n +%n ,# tr%'t tr%'t t$%*% -ro+#*%* -ro+#*%* '* "'*$. F!rt$%r+o F!rt$%r+or% r% t$% -!r-o*% o/ n%&ot#'##t #* to 'o, #* 'n not%* to &o /ro+ $'n to $'n #n t$% "o++%r"#' +'r%r* 'n to t'% t$% -'rt o/ +on% #n "o++%r"#' tr'n*'"t#on*.
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T$% %/%n*%* /ro+ ,$#"$ ' $o%r #n !% "o!r*% #* /r%% 'r% -%r*on' %/%n*%* !t $% #* not /r%% /ro+ r%' %/%n*%*. P!r-o*% o/ N%&ot#'##t; T$% -r#+'r -!r-o*% o/ n%&ot#'##t #n*tr!+%nt #* to 'o, #* 'n not%* t$% %//%"t ,$#"$ +on% #n t$% /or+ o/ &o7%rn+%nt #* or not%* *!--#%* #n t$% "o++%r"#' ,or.
I!*tr't#on< A) A #n!"%* B /r'! to +'% ' -ro+#**or not% -''% to t$% or%r o/ A #n t$% *!+ o/ P 1000 -''% on %+'n. T$#* #* /r'! #n #n!"%+%nt ,$#"$ #* ' -%r*on' %/%n*%. I/ A /#%* 'n '"t#on '&'#n*t t$% +'%r B /or t$% '+o!nt B "'n #nt%r-o*% t$% %/%n*% t$'t $% ,'* #n!"% to +'% t$% not% /r'! 'n t$'t $% # not r%"%#7% 'n 7'!'% "on*#%r't#on /or #t. B) B!t *!--o*% t$'t #n*t%' o/ tr#n& to "o%"t /ro+ B A tr'n*/%r* t$% not% to C ,$o -'* P 1000 'n '":!#r%* t$% not% !n%r "#r"!+*t'n"%* t$'t +'% $#+ ' $o%r #n !% "o!r*%. An t$%n $% C /#%* 'n '"t#on '&'#n*t B t$% +'%r o/ t$% not% /or P 1000.00. I/ t$% not% ,'* not n%&ot#'% B "'n *t# #nt%r-o*% t$% %/%n*% '&'#n*t A ,#t$ ,$o+ $% #* 'n or#&#n' -'rt. B!t #/ t$% not% #* n%&ot#'% B "'nnot #nt%r-o*% t$% %/%n*% t$'t $% ,'* #n!"% /r'! to +'% t$% not% 'n t$'t $% # not r%"%#7% 'n 7'!'% "on*#%r't#on /or #t #* %"'!*% 7#rt!% o/ #t* 'ttr#!t% o/ n%&ot#'##t C ' $o%r #n !% "o!r*% $'* t$% r#&$t to $o t$% #n*tr!+%nt 'n "o%"t t$% *!+ -''% r%&'r%** o/ %/%n*%* ,$#"$ +#&$t ot'#n %t,%%n t$% or#&#n' -'rt#%*.
2. A""!+!'t#on o/ *%"on'r "ontr'"t*. N%4t to n%&ot#'##t t$% +o*t #+-ort'nt "$'r'"t%r#*t#" #/ n%&ot#'##t #* t$% '""!+!'t#on o/ *%"on'r "ontr'"t* ,$#"$ t$% -#" !- 'n "'rr 'on& ,#t$ t$%+ '* t$% 'r% n%&ot#'t% /ro+ on% -%r*on to 'not$%r. T$#* 'ttr#!t% o/ n%&ot#'t% #n*tr!+%nt* #* 9!*t '* %**%nt#' '* n%&ot#'##t #/ t$% 'r% to *%r7% '* *!*t#t!t% o/ +on%. Mo*t Co++on For+* o/ N%&ot#'% In*tr!+%nt* N%&ot#'##t #*t#n&!#*$% /ro+ A**#&n+%nt< (1)
(2) (3)
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(6)
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A**#&n+%nt #* +or% "o+-r%$%n*#7% t%r+ t$'n n%&ot#'##t 'n -%rt'#n* to "ontr'"t #n &%n%r'. On t$% ot$%r $'n n%&ot#'##t -%rt'#n* on to ' *-%"#' "'** o/ "ontr'"t* n'+% to n%&ot#'% #n*tr!+%nt*. In n%&ot#'t#on t$% tr'n*/%r%% #* ' $o%r ,$#% #n '**#&n+%nt t$% tr'n*/%r%% #* 'n '**#&n%%. A $o%r #n !% "o!r*% #* *!9%"t on to r' %/%n*% ,$#% 'n '**#&n%% #* *!9%"t to ot$ r%' 'n -%r*on' %/%n*% '* $% t'%* t$% #n*tr!+%nt *!9%"t to t$% %/%n*%* '7'#'% to $#* -r%%"%**or. A $o%r #n !% "o!r*% +' '":!#r% ' %tt%r t#t% t$'n t$'t o/ ' -r#or -'rt ,$#% &%n%r' 'n '**#&n%% +%r% *t%-* #nto t$% *$o%* o/ t$% '**#&nor. A &%n%r' #nor*%r ,'rr'nt* t$% *o7%n" o/ t$% -r#or -'rt#%* ,$#% 'n '**#&nor o%* not ,'rr'nt t$% *o7%n" o/ -r#or -'rt#%* !n%** %4-r%** *t#-!'t% or t$% #n*o7%n" #* no,n to $#+. An #nor*%r #* not #'% !n%** t$%r% % -r%*%nt+%nt 'n not#"% o/ #*$onor ,$#% t$% '**#&nor #* #'% %7%n ,#t$o!t not#"% o/ #*$onor. N%&ot#'t#on #* &o7%rn% t$% N%&ot#'% In*tr!+%nt L', ,$#% '**#&n+%nt #* &o7%rn% Art#"%* 1>2= to 1>36 o/ t$% C#7# Co% (A**#&n+%nt o/ Cr%#t*).
A**#&n+%nt %/#n%< It +%'n* ' tr'n*/%r o/ t#t% to t$% #n*tr!+%nt ,#t$ t$% '**#&n%% &%n%r' t'#n& on *!"$ t#t% '* $#* '**#&nor *!9%"t to ' %/%n*%* '7'#'% '&'#n*t $#* '**#&nor. T$% ,or @tr'n*/%r #* '*o !*% to ,$%n r%/%rr#n& to '**#&n+%nt.
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INS OF NEGOTIABLE INSTRUMENTS N%&ot#'% In*tr!+%nt* L', %'* ,#t$ t$r%% (3) #n* o/ N%&ot#'% In*tr!+%nt* n'+%< (1) Pro+#**or Not%* (2) B#* o/ E4"$'n&% 'n (3) C$%"* ,$#"$ 'r% '*o #* o/ %4"$'n&% !t o/ ' *-%"#' #n. T$%r% 'r% ot$%r /or+* o/ n%&ot#'% #n*tr!+%nt*. An #n*tr!+%nt* ,$#"$ o%* not "o+- ,#t$ t$% r%:!#r%+%nt* o/ t$% N%&ot#'% In*tr!+%nt* ',* #* ' *#+-% "ontr'"t #n ,r#t#n& 'n #* +%r% #n %7#%n"% o/ *!"$ #nt'n&#% r#&$t* '* +' $'7% %%n "r%'t% t$% '**%nt o/ t$% -'rt#%*. I/ $o,%7%r #t "on/or+* to t$% r%:!#r%+%nt* o/ N%&ot#'% In*tr!+%nt* L', t$% #n*tr!+%nt #* #t*%/ t$% "ontr'"t 'n not 9!*t ' +%r% %7#%n"% o/ r#&$t*. It #* ' +%r"'nt#% *-%"#'t. PROMISSORD NOTE %/#n%< @A n%&ot#'% -ro+#**or not% ,#t$#n t$% +%'n#n& o/ t$% A"t #* 'n !n"on#t#on' -ro+#*% #n ,r#t#n& +'% on% -%r*on to 'not$%r *#&n% t$% +'%r %n&'&#n& to -' on %+'n or 't ' /#4% or %t%r+#n'% /!t!r% t#+% ' *!+ "%rt'#n #n +on% to or%r or to %'r%r. @W$%r% ' not% #* r',n to t$% +'%r* o,n or%r #t #* not "o+-%t% !nt# #nor*% $#+. Fro+ t$% /or%&o#n& #t ,# % not% t$'t ' -ro+#**or not% #* %**%nt#' ' -ro+#*% #n ,r#t#n& to -' ' *!+ "%rt'#n #n +on%. T$% -ro+#*% #* to -' on %+'n or 't ' /#4% or %t%r+#n'% /!t!r% t#+%. I!*tr't#on o/ ' -ro+#**or not% P 10000
'7'o C#t P$##--#n%* A!&!*t 3 200= For 7'!% r%"%#7% I -ro+#*% to -' to t$% or%r o/ S'n'r' P'r* t$% *!+ o/ T%n T$o!*'n P%*o* (P 10000.00) on or %/or% S%-t%+%r 30 200= 't P'%n&% B'n '7'o C#t. (S&.) H%ro An&%%* G%n%r' C$'r'"t%r#*t#"* o/ ' Pro+#**or Not%. T$% /oo,#n& 'r% t$% &%n%r' "$'r'"t%r#*t#"* o/ ' -ro+#**or not%< 1. T$% /#&!r%* 't t$% !--%r %/t $'n "orn%r o/ t$% #n*tr!+%nt @P10000.00. T$#* #* to #n#"'t% t$% '+o!nt o/ t$% not% 'n #* +or% :!#" &r'*-% t$'n #/ ,r#tt%n #n ,or*. 2. T$% -'"% @'7'o C#t P$##--#n%*. It *$o,* t$% -'"% ,$%r% t$% "ontr'"t to -' #* %4%"!t%. 3. T$% 't% @A!&!*t 3 200=. It #* !*!' #n*%rt% %#t$%r to %t%r+#n% ,$%n t$% not% #* !% or to /#4 t$% t#+% ,$%n #nt%r%*t #* to r!n ,$%n t$% -'+%nt o/ #nt%r%*t #* *t#-!'t% or ,$%t$%r or not t$% "o%"t#on o/ t$% #n*tr!+%nt #* 'rr% t$% *t't!t% o/ #+#t't#on or -r%*"r#-t#on. =. T$% 't% o/ +'t!r#t @on or 'o!t S%-t%+%r 30 200=. T$#* #n#"'t%* t$% t#+% ,$%n t$% -ro+#*% to -' #* to % /!/#%. W$%r% $o,%7%r t$% 't% o/ +'t!r#t #* not *t't% t$% #n*tr!+%nt #* -''% on %+'n. 6. T$% -ro+#*% @I -ro+#*% to -'. It "on*#*t* o/ 'n '*o!t% -ro+#*% to o *o+%t$#n& t$'t #* to -'. It #* not *!9%"t to t$% /!/#+%nt o/ ' "on#t#on. >. T$% ,or* @to t$% or%r o/. It +%'n* t$'t t$% -ro+#*% #* to -' '* or%r% or '* "o++'n% t$% -'%%. B!t 'n #n*tr!+%nt +' % -''% to %'r%r. ?. T$% n'+% @S'n'r' P'r*. H% #* t$% -%r*on to ,$o*% or%r or "o++'n t$% +on% #* -ro+#*% to % -'#. H% #* no,n '* t$% -'%%. . T$% *#&n't!r% @H%ro An&%%*. H%ro An&%%* #* t$% +'%r o/ t$% not%. H% #* t$% on% ,$o -ro+#*%* to -' #t 't t$% /#r*t #n*t'n"%. A not% +' % *#&n% +or% t$'n on% -%r*on %#t$%r 9o#nt or 9o#nt 'n *%7%r'. 5. T$% -'"% o/ -'+%nt @'t t$% P'%n&% B'n. It #n#"'t%* ,$%r% t$% not% #* to % -'#. Ho,%7%r t$'t #* not n%"%**'r. An #n*tr!+%nt +' % +'% -''% 't 'n ot$%r '&r%% !-on t$% -'rt#%*. 10. T$% '+o!nt @T%n T$o!*'n P%*o*. It #n#"'t%* '* t$% /#&!r%* o t$% *!+ -ro+#*% to % -'#. A* #t #* ,r#tt%n #n ,or* #t "'nnot % %'*# 't%r% 'n *#n"% #t t'%* on&%r to ,r#t% t$% ,or* t$'n t$% /#&!r%* t$% ,or* 'r% +or% #% to % '""!r't%. 11. T$% "on*#%r't#on @/or 7'!% r%"%#7%. T$#* #n#"'t%* t$'t ' "on*#%r't#on ,'* %n /or t$% not%. T$% "on*#%r't#on +' % *-%"#/#%. B!t t$% ,or* @/or 7'!%
4
r%"%#7% +' % o+#tt% 'n t$% "on*#%r't#on not *-%"#/#% '* "on*#%r't#on #* -r%*!+%. S-%"#' T-%* o/ Pro+#**or Not%* 1. C%rt#/#"'t% o/ %-o*#t ; #* ' ,r#tt%n '"no,%&+%nt ' 'n o/ t$% r%"%#-t o/ +on% on %-o*#t ,$#"$ t$% 'n -ro+#*%* to -' to t$% %-o*#tor %'r%r or to *o+% ot$%r -%r*on or or%r. 2. Bon* A -ro+#*% !n%r *%' to -' +on%. A *%r#%* o/ #n*tr!+%nt* r%-r%*%nt#n& !n#t* o/ #n%t%n%** r%&'r% '* -'rt* o/ on% %nt#r% %t. '. Mort&'&% on*;*%"!r% ' +ort&'&% "on*t#t!t% on "or-or't% -$*#"' -ro-%rt. . E:!#-+%nt on* T$o*% t$'t 'r% *%"!r% ' +ort&'&% or -%&% o/ "or-or't% +o7'% %:!#-+%nt *!"$ '* #n t$% "'*% o/ r'#ro'* t$%#r ro#n& *to". ". Co't%r' tr!*t on*;T$o*% t$'t 'r% not *%"!r% #%n on -$*#"' -ro-%rt o/ t$% "or-or't#on !t ' #%n on *%"!r#t#%* %-o*#t% ,#t$ ' tr!*t%% '* "o't%r'. . G!'r'nt%% on*; On% t$'t #* *%"!r%* t$% &!'r'nt o/ ' "or-or't#on ot$%r t$'n t$% on% #**!#n& #t. It #+-#%* o!% o#&'t#on t$'t o/ t$% #**!#n& "or-or't#on 'n t$'t o/ t$% &!'r'nt%%#n& "or-or't#on. %. %%nt!r%*;T$o*% t$'t 'r% not *%"!r% 'n *-%"#/#" +ort&'&% #%n or -%&% on *-%"#/#" "or-or't% -ro-%rt !t t$% &%n%r' "r%#t o/ t$% "or-or't#on 'n r%*tr#"t#7% '&r%%+%nt. /. In"o+% on*; On% t$% -r#n"#-' o/ ,$#"$ +' or +' not % *%"!r% ' +ort&'&% !t t$% #nt%r%*t #* -''% o!t o/ n%t -ro/#t. &. Con7%rt#% on;On% ,$#"$ "on/%r* on t$% $o%r t$% o-t#on o/ %4"$'n&#n& #t /or ' +or% *-%"!'t#7% "'** o/ *%"!r#t *!"$ '* /or -r%/%rr% *$'r%* or "o++on *$'r%*. $. R%%%+'% on*; T$o*% t$'t % t$% -r#7#%&% to t$% #**!#n& "or-or't#on to -' o// t$% on* %7%n %/or% t$% 't% o/ +'t!r#t. #. R%&#*t%r% on*;T$o*% ,$#"$ 'r% #**!% to ' *-%"#/#% -%r*on n'+% t$%r%#n 'n t$% /'"t o/ t$% #**!'n"% to $#+ #* r%&#*t%r% #n t$% oo* o/ t$% #**!#n& "or-or't#on. 9. Co!-on on*;T$o*% to ,$#"$ 'r% 'tt'"$% ' *$%%t o/ 't% n!+%r% 'n *#+#'r -r#nt% "o!-on* ,$#"$ t$% on$o%r +' "!t o// ,$%n !% or t$%r%'/t%r. BILL OF EXCHANGE %/#n%< A # o/ %4"$'n&% #* 'n !n"on#t#on' or%r #n ,r#t#n& 'r%**% on% -%r*on to 'not$%r *#&n% t$% -%r*on #n& #t r%:!#r#n& t$% -%r*on to ,$o+ #t #* 'r%**% to -' on %+'n or 't ' /#4% or %t%r+#n'% /!t!r% t#+% ' *!+ "%rt'#n #n +on% to or%r or to %'r%r. Fro+ t$% /or%&o#n& #t ,# % not% t$'t ' # o/ %4"$'n&% #* %**%nt#' 'n or%r or ' "o++'n #n ,r#t#n& 'r%**% to *o+%on% r%:!#r#n& $#+ to -' #n +on%. It #* '*o "o++on no,n '* @r'/t. I!*tr't#on o/ B# o/ E4"$'n&% P 10000
'7'o C#t P$##--#n%* A!&!*t 3 200=
T$#rt '* '/t%r *#&$t -' to t$% or%r o/ S'n'r' P'r t$% *!+ o/ T%n T$o!*'n P%*o* (P 10000.00) P$##--#n% C!rr%n". '!% r%"%#7% 'n "$'r&% t$% *'+% to t$% '""o!nt o/ S&. H%ro An&%%* To< Bo A!n' R%&#n' Co+-%4 '7'o C#t
5
G%n%r' "$'r'"t%r#*t#"* o/ ' B# o/ E4"$'n&%. T$% /oo,#n& 'r% t$% &%n%r' "$'r'"t%r#*t#"* o/ ' # o/ %4"$'n&% not /o!n #n t$% -ro+#**or not%< (1) T$% or%r or "o++'n to -' @P' to. T$#* #* 'n or%r or "o++'n to -'. T$!* #n*t%' o/ ' -ro+#*% t$% # o/ %4"$'n&% "ont'#n* ' "o++'n or or%r to -' +on%. (2) T$% *#&n't!r% @H%ro An&%%*. H%ro An&%%* #* t$% r',%r. H% "orr%*-on* to t$% +'%r o/ t$% -ro+#**or not%. (3) T$% n'+% @Bo A!n'. Bo A!n' #* t$% r',%%. H% #* t$% on% or%r% or "o++'n% to -' ' *!+ "%rt'#n #n +on%. Co++on T-%* o/ B# o/ E4"$'n&% 1. Tr'% A""%-t'n"% #* ' r'/t r',n t$% *%%r o/ &oo* !-on t$% !%r /or t$% -!r"$'*% -r#"% o/ *!"$ &oo* ,$#"$ r'/t $'* %%n '""%-t% t$% !%r. 2. In'n 'n /or%#&n #*; An #n'n # o/ %4"$'n&% #* ' # ,$#"$ #* or on #t* /'"% -!r-ort* to % ot$ r',n 'n -''% ,#t$#n t$% P$##--#n%*. An ot$%r # #* ' /or%#&n #. A* on& '* #t #* r',n 'n -''% #n t$% *'+% *t't% #t #* 'n #n'n # o/ %4"$'n&%. 3. B#* #n *%t; It #* "o+-o*% o/ *%7%r' -'rt* %'"$ -'rt %#n& n!+%r% 'n "ont'#n#n& ' r%/%r%n"% to t$% ot$%r -'rt* ' o/ ,$#"$ "on*t#t!t% !t on%. =. So' # ("$%") ; A *o' o/ %4"$'n/% or @*o* r'/t #* ' # o/ %4"$'n&% #**!% on #n on% *#n&% #n*tr!+%nt '* #*t#n&!#*$% /ro+ ' #* #n *%t. It #* !*!' !*% #n#7#!'* ,$%n *tr'#&$t "'*$ ,#t$ no ot$%r '""o+-'n#n& -'-%r* #* #nt%n% to % r%+#tt%. 6. S#&$t r'/t; It #* ' #n o/ # o/ %4"$'n&% -''% 't *#&$t '* #*t#n&!#*$% /ro+ t#+% r'/t ,$#"$ #* -''% 't ' /#4% t#+% '/t%r 't%. >. o"!+%nt'r *#&$t r'/t; It #* ' # '""o+-'n#% -'-%r* 'n r%'t% o"!+%nt* *!"$ '* # o/ '#n& ,'r%$o!*% r%"%#-t %t" #n "onn%"t#on ,#t$ ,$#"$ t$% r'/t #* r',n. ?. B'n r'/t; It #* ' "$%" on% 'n on 'not$%r 'n. It #* #*t#n&!#*$% /ro+ "'*$#%r* "$%" ,$#"$ #* r',n t$% ' 'n !-on #t*%/ *#&n% t$% "'*$#%r 'n -''% to 'not$%r . C$%" ; B# o/ %4"$'n&% r',n on ' 'n -''% on %+'n. Ot$%r /or+* o/ #n*tr!+%nt* o/ Cr%#t '. L%tt%r* o/ "r%#t ; #* ' %tt%r 'r%**% &%n%r' or *-%"#' r%:!%*t#n& t$'t +on% % '7'n"% or "r%#t % %n to t$% %'r%r -ro+#*#n& or %7%n &!'r'nt%%#n& r%-'+%nt o/ t$% '+o!nt '7'n"%. . Tr!*t r%"%#-t; #* 'n #n*tr!+%nt !*% #n !*#n%** tr'n*'"t#on ,$#"$ t$% 'n '7'n"%* t$% +on% to %n'% "!*to+%r to ! &oo* 'n t'%* t$% # o/ '#n& /or *!"$ &oo* #n #t* o,n n'+% 'n 'tt%r *!rr%n%r* -o**%**#on to t$% "!*to+%r '""or#n& to t$% t%r+* o/ t$% '&r%%+%nt t$'t t$% t#t% o/ t$% &oo* *$' r%+'#n #n t$% 'n 'n t$'t t$% -ro"%%* o/ t$% *'% *$' % '--#% to t$% r%-'+%nt o/ '7'n"%* +'% t$% 'n on '""o!nt o/ t$% or#&#n' -!r"$'*% -r#"%. ". B# o/ L'#n&; #* ' r%"%#-t #**!% ' "'rr#%r /or +%r"$'n#*% *$#--%. At$o!&$ :!'*#;n%&ot#'% t$% 'r% not n%&ot#'% #n*tr!+%nt* '* t$% 'r% not #**!% /or t$% -'+%nt o/ +on%. . Mon% or%r; ' ,r#tt%n or%r #**!% 'n %4-r%** "o+-'n &o7%rn+%nt -o*t' o//#"% t%%&r'-$ "o+-'n or 'n /or -'+%nt o/ +on% #n ' #*t'n"%.
B# o/ %4"$'n&% 'n -ro+#**or not% #*t#n&!#*$%< T$% /!n'+%nt' #*t#n"t#on %t,%%n ' # o/ %4"$'n&% 'n -ro+#**or not% #* t$'t t$% /#r*t #* 'n or%r or "o++'n ,$#% t$% *%"on #* ' -ro+#*%. B!t t$'t ' # #* 'n or%r to -' *$o! not % "on/!*% ,#t$ 'n #n*tr!+%nt %#n& -''% to or%r. A # +' % -''% to %'r%r 'n *t# % 'n or%r to -' +on%.
6
W$%r% ' # #* -''% to %'r%r #t #* 'n or%r to -' to %'r%r. T$!* ' # o/ %4"$'n&% #* 'n or%r to -' not %"'!*% #t #* -''% to or%r !t %"'!*% #t* t%r+* #t or%r* or "o++'n* t$'t t$% r',%% to -' +on% to -'%% or %'r%r. A -ro+#**or not% +' % -''% to %'r%r or to or%r 9!*t '* ' # +' %. W$%r% ' -ro+#**or not% #* -''% to %'r%r #t #* ' @-ro+#*% to -' to %'r%r. W$%r% #t #* -''% to or%r #t #* ' -ro+#*% to -' to or%r. B!t #t o%* not %"o+% ' # r%'*on o/ t$% /'"t t$'t #t #* -''% to or%r. CHEC (S-%"#' t-% o/ B# o/ E4"$'n&%) %/#n%< A "$%" #* ' # o/ %4"$'n&% r',n on 'n -''% on %+'n. A* 'r%' *t't% ' "$%" #* ' # o/ %4"$'n&% o/ ' *-%"#' #n. I!*tr't#on o/ ' "$%"< T$% P$##--#n% B'n o/ At%n%o '7'o C#t P$##--#n%*
A""o!nt No. 2222222
A!&!*t 2 200= P' to S'n'r P'r* or or%r t$% '+o!nt o/ On% T$o!*'n P%*o* (P 1000.00). S&. H%ro An&%%*
G%n%r' C$'r'"t%r#*t#"* o/ C$%". T$% &%n%r' "$'r'"t%r#*t#"* o/ ' "$%" 'r% *#+#'r to t$'t o/ ' # o/ %4"$'n&% /or t$% r%'*on t$'t ' "$%" #* ' # o/ %4"$'n&%. #n* o/ C$%" '. C'*$#%r "$%"; #* on% r',n ' 'n !-on #t*%/ -''% to ' t$#r -%r*on. In %//%"t #t #* ' -ro+#*% t$% 'n to -' t$% %*#&n't% -'%% #r%"t 'n +' #n oo*% *%n*% to % "on*#%r% '* -ro+#**or not% t$% #**!#n& 'n. . C%rt#/#% "$%"; #* on% ,$#"$ $'* %%n "%rt#/#% t$% 'n '+o!nt* to 'n '""%-t'n"% t$% 'n. B t$% "%rt#/#"'t#on t$% r',%% 'n %"o+%* -r#+'r# #'% to t$% $o%r ,$o !n%r nor+' "on#t#on* ,o! $'7% no "'#+ '&'#n*t t$% 'n. ". M'n'&%r* "$%";#t #* *#+#'r to ' "'*$#%r "$%". In*t%' o/ %#n& r',n t$% "'*$#%r #t #* r',n #n t$% n'+% o/ t$% +'n'&%r o/ t$% 'n. . M%+or'n!+ "$%"; #* ' "$%" on ,$#"$ #* ,r#tt%n t$% ,or +%+or'n!+ or +%+o or #t* %:!#7'%nt #n#"'t#n& t$'t t$% r',%r %n&'&%* to -' on'/#% $o%r '*o!t% 'n not !-on t$% "on#t#on to -' !-on +'t!r#t #/ !% not#"% o/ -r%*%nt+%nt 'n non -'+%nt % %n. %. B'n r'/t; #* ' "$%" r',n on% 'n !-on 'not$%r 'n -''% to ' t$#r -%r*on on %+'n. /. Cro**% C$%"; #* on% ,$#"$ #n '#t#on to t$% or#n'r "$%" "ont'#n* '*o t$% n'+% o/ ' "%rt'#n 'n%r t$ro!&$ ,$o+ #t +'!*t % -r%*%nt% /or -'+%nt. T$% n'+% o/ t$% 'n%r #* !*!' *t'+-% '"ro** t$% /'"% o/ t$% "$%". Cro**#n& o/ ' "$%" +' % on% r',#n& to -'r'% #n%* tr'n*7%r*' on t$% /'"% o/ t$% "$%". A "$%" +' % "ro**% *-%"#' or &%n%r'. #*t#n"t#on %t,%%n C$%" 'n B# o/ E4"$'n&% (1) A "$%" #* ','* r',n !-on ' 'n or 'n%r ,$%r%'* 'n or#n'r # +' or +' not % r',n '&'#n*t ' 'n. (2) A "$%" #* ','* -''% on %+'n ,$%r%'* 'n or#n'r # +' % -''% on %+'n or 't ' /#4% or %t%r+#n'% /!t!r% t#+%. (3) It #* not n%"%**'r t$'t ' "$%" % -r%*%nt% /or '""%-t'n"% '* #n t$% "'*% o/ ' # o/ %4"$'n&%. C$%"* 'r% not % '""%-t% !t -r%*%nt% 't on"% /or -'+%nt. Ho,%7%r #/ t$% $o%r r%:!%*t* 'n t$% 'n%r %*#r%* $% +' '""%-t.
7
(=) A "$%" #* r',n on ' %-o*#t ,$#% 'n or#n'r # o/ %4"$'n&% #* not. In ot$%r ,or* #t #* not n%"%**'r t$'t ' r',%r o/ ' # o/ %4"$'n&% *$o! $'7% /!n* #n t$% $'n* o/ t$% r',%% !t #n t$% "'*% o/ t$% 'n #t ,o! % /r'!. (6) T$% %'t$ o/ t$% r',%r o/ ' "$%" ,#t$ no,%&% t$% 'n r%7o%* t$% '!t$or#t o/ t$% 'n%r to -' ,$#% t$% %'t$ o/ t$% r',%r o/ t$% or#n'r # o/ %4"$'n&% o%* not. B!t t$%r% *o+% %"#*#on* to t$% "ontr'r. (>) An or#n'r # o/ %4"$'n&% +' % -r%*%nt% /or -'+%nt ,#t$#n r%'*on'% t#+% '/t%r #t* '*t n%&ot#'t#on. B!t ' "$%" +!*t % -r%*%nt% /or -'+%nt ,#t$#n ' r%'*on'% t#+% '/t%r #t* #**!%. (S%"*. ?1 'n 1>) To ,$o+ #n*tr!+%nt* +' % -''% An #n*tr!+%nt +' % +'% or r',n -''% to< '. B%'r%r . Or%r It +' '*o % -''% to ". ' *-%"#/#% -%r*on W$%n #n*tr!+%nt #* -''% to %'r%r< E4'+-%< P' to B or %'r%r P 1000. S&. A To< X W$%n -''% to or%r. An #n*tr!+%nt #* -''% to or%r ,$%n #t #* %4-r%**% to % -''% to t$% (1) or%r o/ ' *-%"#/#% -%r*on or (2) to *-%"#/#% -%r*on or $#* or%r. Or%r o/ ' *-%"#/#% -%r*on E4'+-%< I -ro+#*% to -' to t$% or%r o/ B P 1000.00. S&. A S-%"#/#% -%r*on or $#* or%r E4'+-%< I -ro+#*% to -' to B or $#* or%r P 1000.00. S&. A W$%n #n*tr!+%nt -''% to ' *-%"#/#% -%r*on. An #n*tr!+%nt #* -''% to ' *-%"#/#% -%r*on ,$%n t$% #n*tr!+%nt #* -''% to ' -%r*on n'+% #n t$% #n*tr!+%nt 'n no ot$%r. W$%n 'n #n*tr!+%nt #* -''% to ' *-%"#/#% -%r*on #t #* not n%&ot#'% %"'!*% #t #* n%#t$%r -''% to %'r%r nor -''% to or%r. I!*tr't#on< I -ro+#*% to -' to B P 1000.00. S&. A P'rt#%* to ' Pro+#**or Not%< '. M'%r T$% -%r*on ,$o %4%"!t%* t$% ,r#tt%n -ro+#*%. . P'%%; T$% -%r*on #n ,$o*% /'7or t$% -ro+#**or not% #* +'% -''%.
8
P'rt#%* to ' B# o/ E4"$'n&% '. r',%r; T$% -%r*on ,$o %4%"!t%* t$% ,r#tt%n or%r to -'. . P'%%; T$% -%r*on #n ,$o*% /'7or ' # o/ %4"$'n&% #* r',n -''%. ". r',%%;A""%-tor; T$% r',%% ,$o *#&n#/#%* $#* '**%nt to t$% or%r o/ t$% r',%r. P'rt#%* to C$%". A* t$% "$%" #* ' # o/ %4"$'n&% 't$o!&$ ' *-%"#' #n #t $'* t$% *'+% -'rt#%* '* t$% or#n'r # o/ %4"$'n&%. T$% on #//%r%n"% #* t$'t ' "$%" #* !*!' "%rt#/#% to not '""%-t% t$% r',%% 'n. B!t "%rt#/#"'t#on #* %:!#7'%nt to '""%-t'n"%. Ot$%r P'rt#%* to t$% N%&ot#'% In*tr!+%nt. T$% /oo,#n& 'r% t$% ot$%r -'rt#%* o/ t$% '% to n%&ot#'% #n*tr!+%nt* ,$%n t$% 'r% n%&ot#'t%< (1) #nor*%r 'n (2) #nor*%% #n t$% "'*% #n*tr!+%nt* -''% to or%r 'n (3) -%r*on n%&ot#'t#n& +%r% %#7%r 'n (=) -%r*on* to ,$o+ t$% #n*tr!+%nt #* n%&ot#'t% %#7%r #n t$% "'*% o/ #n*tr!+%nt* -''% to %'r%r. Inor*%r 'n #nor*%% %4-'#n%< W$%n 'n #n*tr!+%nt #* n%&ot#'t% ot$%r -'rt#%* 'r% '% to t$% #n*tr!+%nt. W$%r% t$% n%&ot#'t#on #* #nor*%+%nt "o+-%t% %#7%r t$% -'rt#%* 'r% '% 'r% t$% #nor*%r 'n t$% #nor*%%. T$% #nor*%r #* t$% on% ,$o n%&ot#'t%* #n #nor*%+%nt 'n t$% #nor*%% #* t$% on% to ,$o+ t$% #n*tr!+%nt #* n%&ot#'t% #nor*%+%nt. W$%r% #n*tr!+%nt #* -''% to %'r%r. W$%r% t$% #n*tr!+%nt #* -''% to %'r%r #t "'n % n%&ot#'t% %#7%r ,#t$o!t n%"%**#t o/ t$% #n*tr!+%nt. H% t$%r%/or% #* '*o ' -'rt '% to t$% #n*tr!+%nt !-on n%&ot#'t#on. For '" o/ %tt%r t%r+ $% +' % %*#&n't% '* -%r*on n%&ot#'t#n& %#7%r. T$% -%r*on to ,$o+ t$% #n*tr!+%nt -''% to %'r%r #* n%&ot#'t% '":!#r%* "%rt'#n r#&$t* '* ' $o%r. H% #* t$%r%/or% '*o 'n '#t#on' -'rt to t$% #n*tr!+%nt. For '" o/ ' %tt%r n'+% $% +' % %*#&n't% '* -%r*on to ,$o+ 'n #n*tr!+%nt #* n%&ot#'t% %#7%r. Ho%r. S%"t#on 150 %/#n%* @$o%r '* t$% -'%% or #nor*%% o/ ' # or not% ,$o #* #n -o**%**#on o/ #t or t$% %'r%r t$%r%o/. An @%'r%r #* t$%r%#n %/#n% '* @t$% -%r*on #n -o**%**#on o/ ' # or not% ,$#"$ #* -''% to %'r%r. H%n"% t$% +%'n#n& o/ t$% Ho%r %-%n* !-on t$% #n o/ #n*tr!+%nt #n7o7%. I/ t$% #n*tr!+%nt #* -''% to or%r @$o%r +%'n* t$% -%r*on (1) ,$o #* t$% -'%% or #nor*%% t$%r%#n 'n (2) ,$o #* #n -o**%**#on t$%r%o/. I/ -''% to %'r%r @$o%r +%'n* t$% -%r*on (1) ,$o #* #n -o**%**#on t$%r%o/. Ho%r %4-'#n%< 1. S!--o*% A +'%* t$% /oo,#n& #n*tr!+%nt. @ I -ro+#*% to -' B or or%r P 1000. S&. @ A. (1) A %%-* #t #n $#* r',%r 'n o%* not %#7%r #t to B. I* B ' $o%r No %"'!*% ,$#% B #* t$% -'%% $% #* not #n -o**%**#on o/ t$% not%. 2. S!--o*% t$'t A %#7%r* t$% not% to B 'n B #nor*%* #t to C !t %#7%r* #t to D. W$o #* t$% $o%r C or D N%#t$%r #* t$% $o%r. D #* not t$% $o%r %"'!*% ,$#% $% #* #n -o**%**#on o/ t$% not% $% #* not t$% #nor*%%. C #* not t$% $o%r %"'!*% ,$#% $% #* t$% #nor*%% $% #* not #n -o**%**#on o/ t$% not%. 3. S!--o*% t$'t t$% not% #* -''% to B or %'r%r 'n A %%-* t$% not% #n $#* r',%r. I* B t$% %'r%r No. %"'!*% ,$#% $% #* t$% #nor*%% $% #* not #n -o**%**#on o/ t$% not%. =. B!t *!--o*% t$'t A %#7%r* t$% not% to D !t not to B. I* D t$% $o%r D%* %"'!*% D #* #n -o**%**#on o/ t$% not%. FORMAL REUIREMENTS OF NEGOTIABILITD IN GENERAL In %t%r+#n#n& t$% n%&ot#'##t o/ t$% #n*tr!+%nt t$% /oo,#n& +!*t % "on*#%r%< '. T$% ,$o% o/ t$% #n*tr!+%ntJ . On ,$'t '--%'r* on t$% /'"% o/ t$% #n*tr!+%ntJ 'n
9
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It +!*t % #n ,r#t#n&. T$% #n*tr!+%nt +!*t % *#&n% t$% +'%r or r',%r. T$% #n*tr!+%nt +!*t "ont'#n 'n !n"on#t#on' -ro+#*% or or%r. T$% #n*tr!+%nt +!*t % -''% #n ' *!+ "%rt'#n +on%. T$% #n*tr!+%nt +!*t % -''% 't ' /#% or %t%r+#n'% /!t!r% t#+% or on %+'n. /. T$% #n*tr!+%nt +!*t % -''% to or%r or &. T$% #n*tr!+%nt +!*t % -''% to %'r%r. $. T$% r',%% +!*t % n'+% or ot$%r,#*% #n#"'t% t$%r%#n ,#t$ r%'*on'% "%rt'#nt In"#%nt* #n t$% #/% o/ N%&ot#'% In*tr!+%nt* 1. I**!% %/#n%< T$% /#r*t %#7%r o/ t$% #n*tr!+%nt "o+-%t% #n /or+ to ' -%r*on ,$o t'%* #t '* ' $o%r. 2. %#7%r %/#n%< Tr'n*/%r o/ -o**%**#on ,#t$ #nt%nt to tr'n*/%r t#t%. It "on*#*t# -r#n"#-' o/ -'"#n& t$% tr'n*/%r%% #n -o**%**#on o/ t$% #n*tr!+%nt !t +!*t % '""o+-'n#% ,#t$ #nt%nt to tr'n*/%r t#t%. 3. N%&ot#'t#on %/#n% 'n %4-'#n%< N%&ot#'t#on #* *!"$ tr'n*/%r o/ 'n #n*tr!+%nt /ro+ on% -%r*on to 'not$%r '* to "on*t#t!t% t$% tr'n*/%r%% t$% $o%r o/ t$% #n*tr!+%nt. In ot$%r ,or* n%&ot#'t#on #* ' +o% o/ tr'n*/%rr#n& 'n #n*tr!+%nt Ho, n%&ot#'t#on #* +'% ') P''% to %'r%r; #t +' % n%&ot#'t% +%r% %#7%r. ) P''% to or%r #t +!*t % n%&ot#'t% #nor*%+%nt 'n "o+-%t% %#7%r Inor*%+%nt %/#n% 'n %4-'#n%< Inor*%+%nt #* ' %&' tr'n*'"t#on %//%"t% t$% ,r#t#n& o/ on%* o,n n'+% on t$% '" o/ t$% #n*tr!+%nt or !-on ' -'-%r 'tt'"$% t$%r%to ,#t$ or ,#t$o!t '#t#on' ,or* *-%"#/#n& t$% -%r*on to ,$o+ or to ,$o*% or%r t$% #n*tr!+%nt #* *o -''% ,$%r% on% not on tr'n*/%r* on%* /! %&' t#t% to t$% -'-%r tr'n*/%rr% !t #%,#*% %nt%r* 'n #+-#% &!'r'nt t$'t t$% #n*tr!+%nt ,# % ! -'#. Inor*%+%nt #* %#t$%r (') S-%"#' or () B'n Inor*%+%nt S-%"#' Inor*%+%nt %/#n% 'n %4-'#n%. A *-%"#' #nor*%+%nt #* on% t$'t *-%"#/#%* t$% -%r*on to ,$o+ or to ,$o*% or%r t$% #n*tr!+%nt #* *o -''%. T$% /oo,#n& ,r#tt%n 't t$% '" o/ t $% #n*tr!+%nt #* 'n #!*tr't#on o/ ' 'n #nor*%+%nt. P' to S'n'r' P'r* (S&.) H%ro An&%%* B'n Inor*%+%nt %/#n% 'n %4-'#n%. An #nor*%+%nt #n 'n #* on% t$'t o%* not *-%"#/ t$% -%r*on to ,$o+ or to ,$o*% or%r t$% #n*tr!+%nt #* to % -''%. It "on*#t* +%r% o/ t$% *#&n't!r% o/ t$% #nor*%r. T$% /oo,#n& ,r#tt%n 't t$% '" o/ #n*tr!+%nt #* 'n #!*tr't#on o/ ' 'n #n*tr!+%nt. (S&) H%ro An&%%* N%&ot#'t#on Inor*%+%nt %#7%r "o+-'r%. Fro+ t$% /or%&o#n& t$% /oo,#n& ,# % not%< (1) Str#"t *-%'#n& #nor*%+%nt #* not %:!#7'%nt to n%&ot#'t#on. Inor*%+%nt #* +%r% t$% /#r*t *t%- #n t$% -ro"%** o/ n%&ot#'t#n& 'n #n*tr!+%nt ,$#"$ #* -''% to or%r. T
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*%"on *t%- #n t$% -ro"%** #* %#7%r. Ho,%7%r S%"t#on 151 %/#n%* #nor*%+%nt '* @'n #nor*%+%nt "o+-%t% %#7%r. In t$#* *%n*% #nor*%+%nt #* %:!#7'%nt to n%&ot#'t#on. (2) W$%r% t$% #n*tr!+%nt #* -''% to or%r n%#t$%r #* %#7%r %:!#7'%nt to n%&ot#'t#on. T$% +%r% %#7%r o/ *!"$ 'n #n*tr!+%nt ,#t$o!t #nor*%+%nt #* +%r% %:!#7'%nt to 'n '**#&n+%nt t$%r%o/. (3) B!t ,$%r% t$% #n*tr!+%nt #* -''% to %'r%r %#7%r #* %:!#7'%nt to n%&ot#'t#on. Pr%*%nt+%nt /or A""%-t'n"% %4-'#n%< Pr%*%nt+%nt /or '""%-t'n"% "on*#*t* o/ %4$##t#n& t$% # to t$% r',%% 'n %+'n#n& t$'t $% '""%-t #t t$'t #* *#&n#/ $#* '**%nt to t$% or%r or "o++'n o/ t$% r',%r. W$%n n%"%**'r Un%r S%"t#on 1=3 #t #* +!*t % +'%< '. W$%r% t$% # #* -''% '/t%r *#&$ or #n 'n "'*% ,$%r% -r%*%nt+%nt /or '""%-t'n"% #* n%"%**'r #n or%r to /#4 t$% +'t!r#t o/ t$% #n*tr!+%nt. . W$%r% t$% # %4-r%** *t#-!'t%* t$'t #t *$' % -r%*%nt% /or '""%-t'n"%. ". W$%r% t$% # #* r',n -''% %*%,$%r% t$'n 't t$% r%*#%n"% or -'"% o/ !*#n%** o/ t$% r',%% M%'n#n& o/ '/t%r *#&$t. So+%t#+%* ' # #* r',n -''% @T$#rt '* '/t%r *#&$t. T$#* +%'n* t$'t t$% # #* -''% t$#rt '* '/t%r #t $'* %%n -r%*%nt% /or '""%-t'n"% ,$%t$%r #t $'* %%n '""%-t% or not. A""%-t'n"% %/#n% 'n %4-'#n%. A""%-t'n"% #* t$% *#&n#/#"'t#on t$% r',%% o/ $#* '**%nt to t$% or%r o/ t$% r',%r. A* 'r%' *t't% t$#* #* !*!' on% ,r#t#n& '"ro** t$% /'"% o/ t$% # t$% ,or @'""%-t% /oo,% t$% *#&n't!r% o/ t$% r',%%. T$% t%r+ @'""%-t'n"% $'* t$%r%/or% ' t%"$n#"' +%'n#n& !n%r t$% N%&ot#'% In*tr!+%nt* L',. It *$o! not % !*% '* t$% %:!#7'%nt o/ @r%"%#7%. A* to "$%"* t$% 'r% &%n%r' "%rt#/#% #n*t%' o/ %#n& '""%-t%. T$% "%rt#/#"'t#on o/ ' "$%" #* !*!' on% *t'+-#n& on t$% "$%" t$% ,or @"%rt#/#% 'n !n%rn%'t$ #t #* ,r#tt%n t$% *#&n't!r% o/ t$% -ro-%r o//#"%r #/ t$% 'n. C%rt#/#"'t#on #* %:!#7'%nt to '""%-t'n"%. #*$onor non;'""%-t'n"%. W$%r% t$% # #* -r%*%nt% /or '""%-t'n"% 'n '""%-t'n"% #* r%/!*% t$% r',%% or "'nnot % ot'#n% or ,$%r% -r%*%nt+%nt /or '""%-t'n"% #* %4"!*% 'n # #* not '""%-t% #t #* *'# to % #*$onor% non;'""%-t'n"%. Pr%*%nt+%nt /or P'+%nt %4-'#n%. Pr%*%nt+%nt /or -'+%nt "on*#*t* o/ %4$##t#n& t$% #n*tr!+%nt to t$% -%r*on -r#+'r# #'% t$%r%on 'n %+'n#n& -'+%nt /ro+ $#+ on t$% 't% o/ +'t!r#t. T$#* #* r%:!#r% /or ' #n* o/ n%&ot#'% #n*tr!+%nt*. #*$onor non;-'+%nt. W$%r% t$% #n*tr!+%nt #* -r%*%nt% /or -'+%nt 'n -'+%nt #* r%/!*% or "'nnot % ot'#n% or ,$%r% -r%*%nt+%nt /or -'+%nt #* %4"!*% 'n t$% #n*tr!+%nt #* o7%r!% 'n !n-'# #t #* *'# to % #*$onor% non;-'+%nt. Not#"% o/ #*$onor %4-'#n%. W$%n ' n%&ot#'% #n*tr!+%nt $'* %%n #*$onor% non; '""%-t'n"% or non;-'+%nt ' not#"% o/ #*$onor +!*t % %n to t$% r',%r 'n to %'"$ #nor*%r 'n 'n r',% or #nor*%r to ,$o+ *!"$ not#"% #* not %n #* #*"$'r&%. T$% -!r-o*% #* to not#/ t$% r',% 'n t$% #nor*%r* t$'t t$% #n*tr!+%nt $'* not %%n '""%-t% t$% r',%% or t$'t #t $'* not %%n -'# t$% '""%-tor #n t$% "'*% o/ t$% #* or t$% +'%r #n t$% "'*% o/ not%*. #*"$'r&% %4-'#n%. A n%&ot#'% #n*tr!+%nt #* !*!' #*"$'r&% -'+%nt #n !% "o!r*% or on %$'/ o/ t$% -r#n"#-' %tor. B!t ,$%r% t$% on% -'#n& #* ' -'rt *%"on'r# #'% on t$% #n*tr!+%nt #t #* not #*"$'r&%. T$!* *!--o*% t$'t A #* t$% +'%r o/ ' not% 'n B #* t$% -'%%. H% #nor*%* to C C to to E 'n E to F. I/ A -'* t$% #n*tr!+%nt #t #* #*"$'r&%. I/ C -'* $% #n*tr!+%nt #* not #*"$'r&%. P'rt#%* -r#+'r# 'n *%"on'r# #'% %4-'#n%. Un%r t$% N%&ot#'% In*tr!+%nt* L', t$% -%r*on -r#+'r# #'% on 'n #n*tr!+%nt #* t$% -%r*on ,$o t$% t%r+* o/ t$% #n*tr!+%nt #* '*o!t% r%:!#r% to -' t$% *'+%. A ot$%r -'rt#%* 'r% *%"on'r#. W$%n
11
on% *-%'* o/ -r#+'r 'n *%"on'r #'##t 't %'*t t,o %tor* or o#&or* 'r% "ont%+-'t%. For #n*t'n"% A 'n B 'r% #n%t% to C #n t$% *!+ o/ P10000 A %#n& -r#+'r# #'% B *%"on'r# #'%. T$#* +%'n* t$'t A %#n& t$% -%r*on -r#+'r# #'% +!*t !n t$% /#r*t #n*t'n"% % +'% to -' t$'t t$% -%r*on *%"on'r# #'% B #n t$#* "'*% +!*t % +'% to -'. E//%"t* o/ L#'##t In B#* o/ E4"$'n&%. 1. A""%-tor #* -r#+'r# #'%. H% #* -r#+'r# #'% %"'!*% !n%r S%"t#on >2 $% #* '*o!t% r%:!#r% to -' t$% #n*tr!+%nt '* $% %n&'&%* t$'t $% ,# -' #t '""or#n& to t$% t%nor o/ $#* '""%-t'n"%. 2. T$% r',%r #nor*%r* 'n t$% -%r*on n%&ot#'t#n& +%r% %#7%r 'r% *%"on'r# #'%. Un%r S%"t#on >1 t$% &%n%r' t%nor o/ t$% #'##t o/ t$% r',%r #* t$'t $% ,# -' t$% # #/ t$% r',%% o%* not '""%-t or -' t$% #. In ot$%r ,or* $% #* not '*o!t% r%:!#r% to -' t$% #. I/ t$% r',%% -' t$%n $% #* not r%:!#r% to -'. It #* on ,$%n t$% r',%% o%* not -' t$'t $% ,# % r%:!#r% to -'. 3. B #nor*#n& 'n #n*tr!+%nt ,#t$o!t *'#n& +or% 'n #nor*%r '**!+%* ' t$% #'##t *t't% #n S%"t#on >6 or >>. Un%r *'# *%"t#on* t$% &%n%r' t%nor o/ t$% #'##t o/ t$% #nor*%r #* t$'t $% ,# -' t$% #n*tr!+%nt #/ t$% -%r*on -r#+'r# #'% ,# not -'. In ot$%r ,or* $% #* not '*o!t% r%:!#r% to -' t$% #. I/ t$% r',%% -'* t$%n $% #* not r%:!#r% to -'. It #* on ,$%n t$% r',%% o%* not -' t$'t $% ,# % r%:!#r% to -'. =. B +%r% %#7%r#n& 'n #n*tr!+%nt -''% to %'r%r ,#t$o!t *'#n& +or% ' -%r*on n%&ot#'t#n& +%r% %#7%r '**!+%* t$% #'##t *t't% #n S%"t#on >6 Un%r *' *%"t#on t$% &%n%r' t%nor o/ t$% #'##t o/ ' -%r*on n%&ot#'t#n& %#7%r #* *#+#'r o/ t$'t o/ 'n #nor*%r. In Pro+#**or Not%* 1. T$% +'%r #* -r#+'r# #'%. 2. T$% :!'#/#% or &%n%r' #nor*%r* 'n -%r*on n%&ot#'t#n& +%r% %#7%r 'r% *%"on'r# #'%. Un%r S%"t#on >0 t$% '&r%%+%nt o/ t$% +'%r #* t$'t $% ,# -' t$% #n*tr!+%nt '""or#n& #t* t%nor. H% o%* not *' t$'t $% ,# -' #t #/ *o+%o o%* not -'. H%n"% $% #* -r#+'r# #'%. EXAMINATION OF THE LIABILITIES OF PARTIES Pr#+'r# L#'%< ') T$% +'%r o/ ' -ro+#**or not% ) T$% '""%-tor o/ ' # o/ %4"$'n&% 'n ") T$% "%rt#/#%r o/ ' "$%" S%"on'r# ("on#t#on') #'% ') T$% r',%r o/ ' #J 'n ) T$% #nor*%r o/ ' not% or ' # Not #'%. ') T$% r',%% !nt# $% '""%-t* t$% #n*tr!+%nt #n ,$#"$ "'*% $% %"o+%* 'n '""%-tor.
L#'##t o/ t$% +'%r< 1. H% %n&'&%* to -' t$% not% '""or#n& to #t* t%r+* *!9%"t to no "on#t#on ,$'t*o%7%r.
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2. H% '+#t* t$% %4#*t%n"% o/ t$% -'%% 'n $#* "'-'"#t to #nor*% 't t$% t#+% o/ t$% +'#n& o/ t$% not% L#'##t o/ t$% r',%r< 1. A+#t* t$% %4#*t%n"% o/ t$% -'%% 2. A+#t* $#* "'-'"#t to %nor*% t$% #n*tr!+%nt 't t$% t#+% #t ,'* %4%"!t%. 3. En&'&%* t$'t on !% -r%*%nt+%nt t$% #n*tr!+%nt ,# % '""%-t% or -'# or ot$ '""or#n& to #t* t%norJ =. T$'t #/ #t #* #*$onor% 'n t$% n%"%**'r -ro"%%#n&* on #*$onor % ! t'%n $% ,# -' t$% '+o!nt t$%r%o/ to t$% $o%r or to 'n *!*%:!%nt #nor*%r ,$o +' % "o+-%% to -' #t. L#'##t o/ '""%-tor< 1. En&'&%* to -' #t '""or#n& to t$% t%nor o/ $#* '""%-t'n"%. 2. A+#t* t$% %4#*t%n"% o/ t$% r',%r 'n t$% &%n!#n%** o/ $#* *#&n't!r% 'n $#* "'-'"#t 'n '!t$or#t to r', t$% #n*tr!+%ntJ 'n 3. T$% %4#*t%n"% o/ t$% -'%% 'n $#* t$%n "'-'"#t to #nor*%. W'rr'nt#%* o/ ' -%r*on n%&ot#'t#n& o/ 'n #n*tr!+%nt %#7%r or ' :!'#/#% #nor*%+%nt. 1. T$'t t$% #n*tr!+%nt #* &%n!#n% 'n #n ' r%*-%"t ,$'t #t -!r-ort* to %J 2. T$'t $% $'* &oo t#t% to #t. 3. T$'t ' -r#or -'rt#%* $'7% "'-'"#t to "ontr'"tJ =. T$'t $% $'* no no,%&% o/ 'n /'"t ,$#"$ ,o! #+-'#r t$% 7'##t o/ t$% #n*tr!+%nt or r%n%r #t 7'!%%**. B!t ,$%n t$% n%&ot#'t#on #* %#7%r on t$% ,'rr'nt %-%n* #n /'7or o/ no $o%r ot$%r t$'n t$% #++%#'t% tr'n*/%r%%. (S%"t#on >6) W'rr'nt#%* o/ ' &%n%r' or !n:!'#/#% #nor*%r. 1. 2. 3. =.
T$'t t$% #n*tr!+%nt #* &%n!#n% 'n #n ' r%*-%"t* ,$'t #t -!r-ort* #t to %J T$'t $% $'* &oo t#t% to #tJ T$'t ' -r#or -'rt#%* $' "'-'"#t to "ontr'"tJ T$'t t$% #n*tr!+%nt #* 't t$% *'+% t#+% o/ $#* #nor*%+%nt 7'# 'n *!*#*t#n&J 'n 6. T$'t on !% -r%*%nt+%nt #t *$' % '""%-t% or -'# or ot$ '* t$% "'*% +' % '""or#n& to #t* t%nor 'n t$'t #/ #t % #*$onor% 'n t$% n%"%**'r -ro"%%#n&* on #*$onor % ! t'%n $% ,# -' t$% '+o!nt t$%r%o/ to t$% $o%r or to 'n *!*%:!%nt #nor*%r ,$o +' % "o+-%% to -' #t. Not%< W$#% t$% :!'#/#% #nor*%r ,'rr'nt* +%r% t$'t $% $'* no no,%&% o/ 'n /'"t ,$#"$ ,o! #n7'#'t% t$% #n*tr!+%nt or r%n%r #t !*%%** t$% &%n%r' #nor*%r &!'r'nt%%* t$'t t$% #n*tr!+%nt #* 7'# 'n *!*#*t#n& ,$%t$%r or not $% $'* no,%&% o/ t$% /'"t. EXAMINATION OF SECTIONS 1= 16 K 1> 1. In"o+-%t% #n*tr!+%nt !t %#7%r%; T$% $o%r or t$% -%r*on #n -o**%**#on $'* -r#+' /'"#% '!t$or#t to "o+-%t% 'n #n"o+-%t% #n*tr!+%nt /##n& !- t$% 'n t$%r%#n on ,#t$ t$% +'t%r#' -'rt#"!'r. T$% %/%n*% t$'t t$% #n*tr!+%nt $' not %%n /#% !- #n '""or'n"% ,#t$ t$% '!t$or#t %n 'n ,#t$#n r%'*on'% t#+% #* not '7'#'% ' '&'#n*t ' $o%r #n !% "o!r*%. 2. In"o+-%t% 'n !n%#7%r%. T$% /'"t t$'t 'n #n"o+-%t% #n*tr!+%nt "o+-%t% ,#t$o!t '!t$or#t $' not %%n %#7%r% #* ' %/%n*% %7%n '&'#n*t ' $o%r #n !% "o!r*%. T$% #n7'##t o/ t$% #n*tr!+%nt #* on ,#t$ r%/%r%n"% to t$% -'rt#%* ,$o*% *#&n't!r%* '--%'r on t$% #n*tr!+%nt %/or% 'n not '/t%r %#7%r. 3. Co+-%t% !t !n%#7%r%; I/ ' "o+-%t% #n*tr!+%nt #* /o!n #n t$% -o**%**#on o/ 'n #++%#'t% -'rt or r%+ot% -'rt ot$%r t$'n t$% $o%r #n !% "o!r*% t$%r% #* ' -r#+' /'"#% -r%*!+-t#on o/ %#7%r !t *!9%"t to r%!tt'. An !n%#7%r%
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#n*tr!+%nt #* #no-%r't#7% %"'!*% %#7%r #* -r%;r%:!#*#t% to #'##t. Ho,%7%r #/ t$% #n*tr!+%nt #* no on&%r #n t$% -o**%**#on o/ t$% -%r*on ,$o *#&n% #t 'n #t #* "o+-%t% #n #t* t%r+* ' 7'# 'n #nt%nt#on' %#7%r $#+ #* -r%*!+% !nt# t$% "ontr'r #* -ro7%. In t$% $'n* o/ ' $o%r #n !% "o!r*% #/ ' "o+-%t% #n*tr!+%nt #* #n $#* $'n* ' 7'# %#7%r t$%r%o/ ' -'rt#%* -r#or to $#+ #* "on"!*#7% -r%*!+%. R#&$t* o/ t$% Ho%r< S%"t#on 61 C'**%* o/ Ho%r*< 2. Ho%r* *#+- (*%"t#on 61) 3. Ho%r /or 7'!% (S%"t#on 2>) =. Ho%r #n !% "o!r*% (S%"t#on 62 6?) R#&$t* o/ Ho%r #n &%n%r'< 1. H% +' *!% on t$% #n*tr!+%nt #n $#* n'+%J 'n 2. H% +' r%"%#7% -'+%nt 'n #/ t$% -'+%nt #* #n !% "o!r*% (S%"t#on ) t$% #n*tr!+%nt #* #*"$'r&% (S%"t#on 115). In t$% $'n* o/ 'n $o%r ot$%r t$'n ' $o%r #n !% "o!r*% ' n%&ot#'% #n*tr!+%nt #* *!9%"t to t$% *'+% %/%n*%* '* #/ #t ,%r% non;n%&ot#'%. Ho,%7%r #t o%* not +%'n t$'t 'n #n*tr!+%nt #n t$% $'n* o/ *!"$ $o%r #* non;n%&ot#'%. Un%r S%"t#on 6 K 65 ' $o%r ,$o #* not $#+*%/ ' $o%r #n !% "o!r*% !t %r#7%* $#* t#t% /ro+ *!"$ /or+%r $o%r #* %n t$% r#&$t* o/ *!"$ /or+%r $o%r. W$'t "on*t#t!t% ' Ho%r #n !% Co!r*% A $o%r #n !% #* ' $o%r ,$o $'* t'%n t$% #n*tr!+%nt !n%r t$% /oo,#n& "on#t#on*< 1. T$'t t$% #t #* "o+-%t% 'n r%&!'r !-on #t* /'"%J 2. T$'t $% %"'+% t$% $o%r o/ #t %/or% #t ,'* o7%r!% 'n ,#t$o!t not#"% t$'t #t $' %%n -r%7#o!* #*$onor% #/ *!"$ ,'* t$% /'"tJ 3. T$'t $% too #t #n &oo /'#t$ 'n /or 7'!%J =. T$'t 't t$% t#+% #t ,'* n%&ot#'t% to $#+ $% $' no not#"% o/ 'n #n/#r+#t #n t$% #n*tr!+%nt or %/%"t #n t$% t#t% o/ t$% -%r*on n%&ot#'t#n& #t. %/%n*%*< R%' %/%n*%*< T$%*% 'r% %/%n*%* t$'t 'r% '7'#'% '&'#n*t ' -'rt#%* ot$ #++%#'t% 'n r%+ot% #n"!#n& $o%r* #n !% "o!r*%. T$% 'r% "'% @r%' %"'!*% t$% 'r% 'tt'"$% to t$% @r%* t$'t #* t$% #n*tr!+%nt #t*%/ r%&'r%** o/ t$% +%r#t* or %+%r#t* o/ t$% $o%r. T$% #n*tr!+%nt #* 7'!%%** 'n "'n n%7%r % %n/or"%. It #* !n%n/or"%'% '&'#n*t t$% -'rt %nt#t% to *%t !- t$% %/%n*%. '. In"'-'"#t '* /'r '* t$% #n"'-'"#t't% #* "on"%rn%. (Art. 132? C#7# Co%) . I%&'#t o/ "ontr'"t ,$%n %"'r% ', (Art. 1=05 C#7# Co%) %4"%-t ,$%r% t$% +'%r or r',%r #* $#+*%/ ' -'rt to #t* #%&'#tJ t$!* ' not% /or &'+#n& %t ('n #%&' "on*#%r't#on) #* ' +%r% -%r*on' %/%n*% (S%"t#on 66) ". W'nt o/ %#7%r o/ #n"o+-%t% #n*tr!+%nt (S%"t#on 16) . For&%r (S%"t#on 23) %. W'nt o/ '!t$or#t '--'r%nt 'n r%' (S%"t#on 23) /. !r%** '+o!nt#n& to /or&%r '* ,$%n on% t'%* t$% $'n* o/ 'not$%r 'n /or"%* $#+ to *#&n $#* n'+%J &. Fr'! #n /'"t!+ or /r'! #n %**% "ontr'"t!* (S%"t#on 1=) $. Fr'!!%nt 't%r't#on $o%r (S%". 12=) #. Pr%*"r#-t#on (Art. 11=0;11=2J 11==;11=? C#7# Co%) 9. Ot$%r In/#r+#t#%* '--%'r#n& #n t$% /'"% o/ t$% #n*tr!+%nt (*%". 62) . #*"$'r&% 't or '/t%r +'t!r#t
14
P%r*on' %/%n*%*< T$%*% 'r% %/%n*%* ,$#"$ &ro, o!t o/ t$% '&r%%+%nt or "on!"t o/ ' -'rt#"!'r -%r*on #n r%&'r to t$% #n*tr!+%nt ,$#"$ r%n%r* #t #n%:!#t'% /or $#+ t$o!&$ $o#n& t$% %&' t#t% to %n/or"% #t '&'#n*t t$% -'rt *o!&$t to % +'% #'% !t ,$#"$ 'r% not '7'#'% '&'#n*t ' $o%r #n !% "o!r*% (S%"t#on 66). T$% 'r% '7'#'% on '&'#n*t t$% -%r*on or *!*%:!%nt $o%r ,$o *t'n* #n -r#7#t ,#t$ $#+. In ot$%r ,or* t$% "'n % !*% on %t,%%n or#&#n' -'rt#%* or #++%#'t% -'rt#%* or '&'#n*t on% ,$o #* not ' $o%r #n !% "o!r*%. '. F##n& t$% ,ron& 't% (S%"t#on 13) . F##n& !- 'n* not #n '""or'n"% ,#t$ t$% '!t$or#t %n 'n ,#t$#n r%'*on'% t#+% (S%". =) ". W'nt o/ %#7%r o/ "o+-%t% #n*tr!+%nt (S%". 1>) . A*%n"% or /'#!r% o/ "on*#%r't#on (*%"t#on 2) %. S#+-% /r'! or /r'! #n!"%+%nt (S%"t#on 66) /. A":!#*#t#on o/ #n*tr!+%nt (not *#&n't!r%) !r%** or /or"% 'n /%'r &. A":!#*#t#on o/ #n*tr!+%nt !n',/! +%'n* $. A":!#*#t#on o/ #n*tr!+%nt /or 'n #%&' "on*#%r't#on #. N%&ot#'t#on #n r%'"$ o/ /'#t$ 9. N%&ot#'t#on !n%r "#r"!+*t'n"%* t$'t '+o!nt* to /r'! . Inno"%nt 't%r't#on or *-o#'t#on (S%"t#on 12= '*t *%nt%n"%). S-o#'t#on #* 'n 't%r't#on +'% *tr'n&%r to 'n #n*tr!+%nt. I/ t$% or#&#n' +%'n#n& "'n % '*"%rt'#n% t$% $o%r #n !% "o!r*% +' r%"o7%r '""or#n& to #t* t%nor. . S%t;o// %t,%%n #++%#'t% -'rt#%* (S%"t#on 6) +. #*"$'r&% -'+%nt or r%n!n"#'t#on or r%%'*% %/or% +'t!r#t (S%"*. 60 121 122) n. #*"$'r&% o/ -'rt *%"on'r# #'% #*"$'r&% o/ -r#or -'rt (S%". 20 (") o. W'nt o/ '!t$or#t !t '&%nt $'* '--'r%nt '!t$or#t (Art. 1>5 C#7# Co%) R#&$t* o/ ' Ho%r not #n !% "o!r*%< 1. H% +' *!% on t$% #n*tr!+%nt #n $#* o,n n'+% (S%". 61) 2. H% +' r%"%#7% -'+%nt 'n #/ t$% -'+%nt #* #n !% "o!r*% $% #* #*"$'r&%. 3. H% #* %nt#t% to t$% #n*tr!+%nt !t $o* #t *!9%"t to t$% *'+% %/%n*%* '* #/ #t ,%r% non;n%&ot#'% (S%". 6) 'n =. H% $'* ' t$% r#&$t* o/ t$% $o%r #n !% "o!r*% /ro+ ,$o+ $% %r#7%* $#* t#t% #n r%*-%"t o/ ' -'rt#%* -r#or to *!"$ $o%r -ro7#% $% #* not $#+*%/ ' -'rt to 'n /r'! or #%&'#t '//%"t#n& t$% #n*tr!+%nt. R#&$t* o/ -!r"$'*%r /ro+ ' $o%r #n !% "o!r*%< G%n%r' R!%< I/ ' -%r*on #* not ' $o%r #n !% "o!r*% $#* r#&$t* 'r% t$o*% o/ $#* tr'n*/%r%% o/ ' non;n%&ot#'% #n*tr!+%nt *o t$'t $% #* not /r%% /ro+ -%r*on' %/%n*%*. E4"%-t#on< A $o%r ,$o %r#7%* $#* t#t% /ro+ ' $o%r #n !% "o!r*% $' ' t$% r#&$t* o/ t$% 'tt%r %7%n t$o!&$ $% $#+*%/ #* ' +%r% tr'n*/%r%%. R%:!#*#t%*< '. T$'t $% %r#7%* $#* t#t% t$ro!&$ ' $o%r #n !% "o!r*%J 'n . T$'t $% ,'* no $#+*%/ ' -'rt to /r'! or #%&'#t '//%"t#n& t$% #n*tr!+%nt. PRESENTMENT FOR PADMENT< Pr%*%nt+%nt /or -'+%nt #* t$% -r%*%nt't#on o/ 'n #n*tr!+%nt* (-ro+#**or not% or '""%-t% # o/ %4"$'n&%) to t$% -%r*on -r#+'r# #'% /or t$% -!r-o*% /or o/ %+'n#n& 'n r%"%#7#n& -'+%nt.
15
It #* n%"%**'r to "$'r&% t$% -%r*on* *%"on'r# #'% n'+% t$% r',%r 'n t$% #nor*%r R%'*on< T$% !n%rt'% to -' on o/ t$% #n*tr!+%nt #* #*$onor%. (S%". >1. >>) W$%n #* -r%*%nt+%nt /or -'+%nt not n%"%**'r (1) To "$'r&% t$% -%r*on* -r#+'r# #'% (S%". ?0). R%'*on< T$% 'r% '*o!t% r%:!#r% to -' t$% #n*tr!+%nt !-on +'t!r#t. (2) W$%n -r%*%nt+%nt #* #*-%n*% ,#t$ (S%% S%". 2) W$%r% '/t%r t$% %4%r"#*% o/ r%'*on'% ##&%n"% -r%*%nt+%nt '* r%:!#r% ', "'nnot % +'%. W$%r% t$% r',%% #* /#"t#t#o!* -%r*onJ 'n B ,'#7%r o/ -r%*%nt+%nt %4-r%** or #+-#% (3) W$%r% t$% # $'* %%n #*$onor% non;'""%-t'n"% (S%% S%". 161) It #* ! -r%*%nt% /or -'+%nt 'n -'+%nt #* r%/!*% or "'nnot % ot'#n%J or Pr%*%nt+%nt #* %4"!*% 'n t$% #n*tr!+%nt #* o7%r!% 'n !n-'# (S%". 3) (=) To "$'r&% t$% r',%r !n%r S%"t#on ?5 'n t$% #nor*%r !n%r S%"t#on 0 Pr%*%nt+%nt /or -'+%nt #* not r%:!#r% ,$%r% t$% r',%r $'* no r#&$t to %4-%"t or r%:!#r% t$'t t$% r',%% or '""%-tor ,# -' t$% #n*tr!+%nt '* ,$%r% t$% r',%r $'* *to--% -'+%nt t$%r%o-r or $'* no /!n* ,#t$ t$% r',%%. Pr%*%nt+%nt /or -'+%nt #* not r%:!#r% ,$%r% t$% #n*tr!+%nt ,'* +'% or '""%-t% /or t$% '""o++o't#on o/ t$% #nor*%r 'n $% $'* no r%'*on to %4-%"t t$'t t$% #n*tr!+%nt ,# n% -'# o/ -r%*%nt%. (S%". 0). R%'*on< T$% '""o++o't% -'%%;#nor*%r #* t$% r%' %tor. -
W$%n *$o! -r%*%nt /or -'+%nt to % +'% 1.
2.
W$%r% t$% #n*tr!+%nt #* -''% 't ' /#4% or %t%r+#n'% /!t!r% t#+%< ; It +!*t % +'% on t$% 't% #t /'* !% ,#t$o!t -%r#o o/ &r'"%. (S%"t#on 6) W$%r% t$% #n*tr!+%nt #* -''% on %+'n< (') Pro+#**or not%. ; It +!*t % +'% to t$% +'%r ,#t$#n r%'*on'% t#+% '/t%r #t* #**!%. (S%". ?1) () B# o/ %4"$'n&% ; #t +!*t % +'% to t$% r',%% or '""%-tor ,#t$#n ' r%'*on'% t#+% '/t%r t$% '*t n%&ot#'t#on t$%r%o/.
E//%"t #/ -r%*%nt+%nt o/ -'+%nt #* not +'% #n !% t#+%< T$% r',%r 'n #nor*%r ,# % #*"$'r&% /ro+ t$%#r *%"on'r #'##t (S%". ?0) !n%** *!"$ -r%*%nt+%nt #* %4"!*% or #*-%n*% ,#t$. B!t t$#* o%* not +%'n t$'t t$% #nor*%r* 'r% '*o #*"$'r&% /ro+ #'##t /or r%'"$ o/ ,'rr'nt#%*. (S%"*. >6 >>)
P'+%nt In !% Co!r*%< 1. P'+%nt +!*t % +'% 't or '/t%r t$% 't% o/ +'t!r#tJ ot$%r,#*% #t ,o! "on*t#t!t% ' n%&ot#'t#on '" to t$% -r#+'r -'rtJ 2. It +!*t % +'% to t$% $o%rJ 'n 3. It +!*t % +'% t$% +'%r or '""%-tor #n &oo /'#t$ 'n ,#t$o!t not#"% t$'t t$% $o%r* t#t% #* %/%"t#7% (*%". ) NOTICE OF ISHONOR An #n*tr!+%nt #* "on*#%r% to % #*$onor%< 1. I/ #t #* not '""%-t% ,$%n -r%*%nt% /or '""%-t'n"% or 2. I/ #t #* not -'# ,$%n -r%*%nt% /or -'+%nt 't +'t!r#tJ or
16
3. I/ -r%*%nt+%nt #* %4"!*%* or ,'#7% 'n t$% #n*tr!+%nt #* -'*t !% 'n !n-'# (S%"*. 3 1=5) O9%"t o/ #n& not#"% o/ #*$onor #* t,o;/o< 1. To #n/or+ t$% -'rt#%* *%"on'r#! #'% t$'t t$% +'%r or '""%-tor '* t$% "'*% +' % /'#% to +%%t $#* %n&'&%+%ntJ 'n 2. To '7#*% *!"$ -'rt#%* t$'t t$% ,# % r%:!#r% to +'% -'+%nt. E//%"t #/ /'#!r% to % not#"% o/ #*$onor< W$%n 'n #n*tr!+%nt #* #*$onor% non;'""%-t'n"% on -r%*%nt+%nt /or '""%-t'n"% (#) or non;-'+%nt 't #t* +'t!r#t (ot$ # 'n not%) not#"% o/ *!"$ #*$onor +!*t % %n to -%r*on* *%"on'r# #'% n'+%< r',%r #/ #t % ' # 'n %'"$ #nor*%r ,$%t$%r #t % ' # or not%. An *!"$ -%r*on to ,$o+ *!"$ not#"% #* not %n #* #*"$'r&%. Not#"% o/ #*$onor #* not n%"%**'r< 1. To "$'r&% -%r*on* -r#+'r# #'% %"'!*% t$ 'r% t$% 7%r on%* ,$o #*$onor% t$% #n*tr!+%ntJ 2. W$%n not#"% o/ #*$onor% #* ,'#7%J 3. W$%n -rot%*t #* ,'#7% (*%".111). R%'*on< Prot%*t #n"!%* -r%*%nt+%nt not#"% o/ #*$onor 'n ' *t%-* '""o+-'n#n& #*$onor n%"%**'r to t$% "$'r&% t$% -%r*on* *%"on'r# #'%J =. W$%n not#"% o/ #*$onor #* #*-%n*% ,#t$ 6. To "$'r&% t$% r',%r !n%r S%". 113 'n t$% #nor*%r !n%r %". 116) >. W$%r% !% not#"% to #*$onor non;'""%-t'n"% o/ ' # $'* %%n %n #n ,$#"$ "'*% not#"% o/ *!*%:!%nt #*$onor non;-'+%nt #* not n%"%**'r !n%** #n t$% +%'nt#+% t$% #n*tr!+%nt $'* %%n '""%-t%. ?. W$%r% ' # $'* %%n #*$onor% non;'""%-t'n"% not#"% o/ #*$onor to -%r*on* *%"on'r# #'% #* not n%"%**'r #n or%r to "$'r&% t$%+ '* to t$% $o%r #n !% "o!r*% ,#t$o!t not#"% o/ #*$onor non;'""%-t'n"%. R%'*on< T$% o+#**#on to % not#"% o/ non;'""%-t'n"% o%* not -r%9!#"% t$% r#&$t* o/ ' $o%r #n !% "o!r*% *!*%:!%nt to t$% o+#**#on. (S%". 11?). P%r*on* ,$o ,# % not#"%< 1. B t$% $o%r or 'not$%r on $#* %$'/J or 2. B or on %$'/ o/ 'n -'rt to t$% #n*tr!+%nt; '. ,$o +' % "o+-%% to -' #t to t$% $o%r 'n . ,$o !-on t'#n& #t !- ,o! $'% ' r#&$t to r%#+!r*%+%nt /ro+ t$% -'rt to ,$o+ t$% not#"% #* %n (S%. 50) 'n #* t$%r%/or% %nt#t% to % not#"% (S%". 53). I/ t$% not#"% #* %n 'n '&%nt t$% 'tt%r n%% not % '!t$or#% t$% -r#n"#-% (S%". 51). R%'*on< T$% #n& o/ not#"% %n%/#t* t$% -r#n"#-'. E//%"t o/ Not#"% o/ #*$onor %n t$% $o%r or ' -'rt %nt#t% to % not#"% 1. B t$% $o%r. ; It #n!r%* to t$% %n%/#t o/ (') ' *!*%:!%nt $o%r* 'n () ' -r#or -'rt#%* ,$o $'7% r#&$t o/ r%"o!r*% '&'#n*t t$% -'rt to ,$o+ #t #* %n (S%". 52) 2. B ' -'rt %nt#t% to % not#"%. It #n!r%* to t$% %n%/#t o/ (') $o%r 'n () ' *!*%:!%nt to t$% -'rt to ,$o+ not#"% #* %n. ((S%". 53)
17
