Convention on International Bills of Exchange and International Promissory Notes in the United States

Article 71

A party who pays an instrument and is thereby discharged in whole or in
part of his liability on the instrument may recover from the parties
liable to him:

(a) The entire sum which he has paid;

(b) Interest on that sum at the rate specified in paragraph (2) of
article 70, from the date on which he made payment;

(c) Any expenses of the notices given by him.

CHAPTER VI. DISCHARGE

Section 1. Discharge by payment

Article 72

(1) A party is discharged of liability on the instrument when he pays
the holder, or a party subsequent to himself who has paid the instrument
and is in possession of it, the amount due pursuant to article 70 or 71:

(a) At or after maturity; or

(b) Before maturity, upon dishonour by non-acceptance.

(2) Payment before maturity other than under subparagraph (b) of
paragraph (1) of this article does not discharge the party making the
payment of his liability on the instrument except in respect of the
person to whom payment was made.

(3) A party is not discharged of liability if he pays a holder who is
not a protected holder, or a party who has taken up and paid the
instrument, and knows at the time of payment that the holder or that
party acquired the instrument by theft or forged the signature of the
payee or an endorsee, or participated in the theft or the forgery.

(4) (a) A person receiving payment of an instrument must, unless agreed
otherwise, deliver:

(i) To the drawee making such payment, the instrument;

(ii) To any other person making such payment, the instrument, a
receipted account, and any protest.

(b) In the case of an instrument payable by instalments at
successive dates, the drawee or a party making a payment, other
than payment of the last instalment, may require that mention of
such payment be made on the instrument or on a slip affixed thereto
(“allonge”) and that a receipt therefor be given to him.

(c) If an instrument payable by instalments at successive dates is
dishonoured by non-acceptance or by non-payment as to any of its
instalments and a party, upon dishonour, pays the instalment, the
holder who receives such payment must give the party a certified
copy of the instrument and any necessary authenticated protest in
order to enable such party to exercise a right on the instrument.

(d) The person from whom payment is demanded may withhold payment
if the person demanding payment does not deliver the instrument to
him. Withholding payment in these circumstances does not constitute
dishonour by non-payment under article 58.

(e) If payment is made but the person paying, other than the
drawee, fails to obtain the instrument, such person is discharged
but the discharge cannot be set up as a defence against a protected
holder to whom the instrument has been subsequently transferred.

Article 73

(1) The holder is not obliged to take partial payment.

(2) If the holder who is offered partial payment does not take it, the
instrument is dishonoured by non-payment.

(3) If the holder takes partial payment from the drawee, the guarantor
of the drawee, or the acceptor or the maker:

(a) The guarantor of the drawee, or the acceptor or the maker is
discharged of his liability on the instrument to the extent of the
amount paid; and

(b) The instrument is to be considered as dishonoured by
non-payment as to the amount unpaid.

(4) If the holder takes partial payment from a party to the instrument
other than the acceptor, the maker or the guarantor of the drawee:

(a) The party making payment is discharged of his liability on the
instrument to the extent of the amount paid; and

(b) The holder must give such party a certified copy of the
instrument and any necessary authenticated protest in order to
enable such party to exercise a right on the instrument.

(5) The drawee or a party making partial payment may require that
mention of such payment be made on the instrument and that a receipt
therefor be given to him.

(6) If the balance is paid, the person who receives it and who is in
possession of the instrument must deliver to the payor the receipted
instrument and any authenticated protest.

Article 74

(1) The holder may refuse to take payment at a place other than the
place where the instrument was presented for payment in accordance with
article 55.

(2) In such case if payment is not made at the place where the
instrument was presented for payment in accordance with article 55, the
instrument is considered to be dishonoured by non-payment.

Article 75

(1) An instrument must be paid in th currency in which the sum payable
is expressed.

(2) If the sum payable is expressed in a monetary unit of account
within the meaning of subparagraph (1) of article 5 and the monetary unit
of account is transferable between the person making payment and the
person receiving it, then, unless the instrument specifies a currency of
payment, payment shall be made by transfer of monetary units of account.
If the monetary unit of account is not transferable between those
persons, payment shall be made in the currency specified in the
instrument or, if no such currency is specified, in the currency of the
place of payment.

(3) The drawer or the maker may indicate in the instrument that it must
be paid in a specified currency other than the currency in which the sum
payable is expressed. In that case:

(a) The instrument must be paid in the currency so specified;

(b) The amount payable is to be calculated according to the rate of
exchange indicated in the instrument. Failing such indication, the
amount payable is to be calculated according to the rate of
exchange for sight drafts (or, if there is no such rate, according
to the appropriate established rate of exchange) on the date of
maturity:

(i) Ruling at the place where the instrument must be presented
for payment in accordance with subparagraph (g) of article
55, if the specified currency is that of that place (local
currency); or

(ii) If the specified currency is not that of that place,
according to the usages of the place where the instrument
must be presented for payment in accordance with subparagraph
(g) of article 55;

(c) If such an instrument is dishonoured by non-acceptance, the
amount payable is to be calculated:

(i) If the rate of exchange is indicated in the instrument,
according to that rate;

(ii) If no rate of exchange is indicated in the instrument, at the
option of the holder, according to the rate of exchange
ruling on the date of dishonour or on the date of actual
payment;

(d) If such an instrument is dishonoured by non-payment, the amount
payable is to be calculated:

(i) If the rate of exchange is indicated in the instrument,
according to that rate;

(ii) If no rate of exchange is indicated in the instrument, at the
option of the holder, according to the rate of exchange
ruling on the date of maturity or on the date of actual
payment.

(4) Nothing in this article prevents a court from awarding damages for
loss caused to the holder by reason of fluctuations in rates of exchange
if such loss is caused by dishonour for non-acceptance or by non-payment.

(5) The rate of exchange ruling at a certain date is the rate of
exchange ruling, at the option of the holder, at the place where the
instrument must be presented for payment in accordance with subparagraph
(g) of article 55 or at the place of actual payment.