If a bill drawn in one country is negotiated, accepted or payable in another, the rights, duties and liabilities of the parties thereto are determined as follows, namely—
| (a) |
the validity of the bill as regards requisites in form is determined by the law of the place of issue, and the validity, as regards requisites in form, of every supervening contract, such as acceptance, indorsement or that of an aval, is determined by the law of the place where such contract was made, but— |
| (i) |
a bill issued outside the Republic is not invalid by reason only that it is not stamped in accordance with the law of the place of issue; and |
| (ii) |
a bill issued outside the Republic which conforms, as regards requisites in form, to the law of the Republic, may for purposes of enforcing payment thereof be treated as valid as between all persons who negotiate, hold or become parties to it in the Republic; |
[Paragraph (a) amended by section 26 (a) of Act 56 of 2000.]
| (b) |
subject to the provisions of this Act, the interpretation of the contract of the drawer, indorser, acceptor or signer of an aval of a bill is determined by the law of the place where such contract is made: Provided that if a bill payable in the Republic is indorsed outside the Republic, the indorsement shall as regards the payer be interpreted according to the law of the Republic; |
[Paragraph (b) substituted by section 26 (b) of Act 56 of 2000.]
| (c) |
the duties of the holder with respect to presentment for acceptance or payment, and the necessity for, or sufficiency of, a protest or notice of dishonour or otherwise, are determined by the law of the place where the act is done or the bill is dishonoured; |
| (d) |
if a bill is drawn outside but payable in the Republic, and the sum payable is not expressed in currency of the Republic, the amount shall, in the absence of an express stipulation to the contrary, be calculated according to the rate of exchange for sight drafts at the place of payment on the day the bill is payable; |
| (e) |
if a bill is drawn in one country and is payable in another the due date thereof is determined according to the law of the place where it is payable. |
Statistics Act, 1999
