| Chapter II Bills of Exchange |
Section 9 Right of Recourse |
| Article 85 |
（Recourse upon maturity and premature recourse）If a bill is dishonored by non-payment at its maturity, the holder, after performing all acts necessary to the exercise and preservation of his rights on the bill, is entitled to exercise his right of recourse against the endorser, the drawer, and any other person liable on the bill.
In any of the following situations the holder may exercise his right of recourse even before the maturity of the bill:
1. The bill is dishonored by non-acceptance.
2. Presentment for acceptance or payment is rendered impossible by death or absconding of the drawee or the acceptor, or by some other cause.
3. The drawee or the acceptor has been adjudicated bankrupt. |
| Article 86 |
（Formulation of the rejection certificate）If the whole or a part of a bill is dishonored by non-acceptance or non-payment, or if presentment for acceptance or payment of the bill is rendered impossible, the holder shall apply for and cause a protest to be made to attest the fact.
If the drawee or the acceptor specifies on the bill of the date of presentment and his non-acceptance or non-payment of the whole or a part of the bill, as the case may be, the note, accompanied by his signature, has the same force and effect as a protest.
Bankruptcy of the drawee or the acceptor shall be proved by an authenticated or excerpted copy of the bankruptcy adjudication. |
| Article 87 |
（Deadline for formulating the rejection certificate）A protest for non-acceptance shall be made within the time limit allowed for presentment for acceptance. |
| Article 88 |
（Effect of acceptance rejection certificate）A protest for non-payment shall be made on the day payment is refused or within 5 days after the refusal of payment. However, if the holder assents to a request for deferment of payment, the protest shall be made on the last day of the deferment or within 5 days thereafter.
After a protest for non-acceptance is made, neither presentment for payment nor protest for non-payment is necessary. |
| Article 89 |
（Notice for the reason of the rejection）The holder shall notify the endorser or endorsers, the drawer, and all other persons liable on the bill of the dishonor within 4 days after the making of the protest.
If there is a waiver of protest by special agreement, the holder shall give the notice referred to in the preceding paragraph within 4 days after dishonor by non-acceptance or non-payment.
An endorser shall in turn notify the party prior to him within 4 days after receiving the notice referred to in the preceding paragraph.
If the address of an endorser's domicile is not indicated on the bill, or if, albeit indicated, it is not clearly written and therefore indiscernible, the notice intended for the endorser shall be addressed to the party prior to him. |
| Article 90 |
（Exemption of the obligation for providing notifications）The drawer, any endorser, or any other person liable on the bill may exempt the holder from his obligation of giving notice of dishonor before the expiration of the time limit for notice set forth in Article 89. |
| Article 91 |
（Method of notification）Notice of dishonor may be given by any means of communication, but the person who asserts that he has given notice within the time limit set forth in Article 89 shall bear the burden of proof.
When notice is sent by post, if the address of the domicile of the person to be notified is correctly specified on the envelope, notice is deemed to have been given. |
| Article 92 |
（Remedial measures for error in notice attributable to force majeure factors）If a person is prevented from sending notice within the time limit set forth in Article 89 by circumstances beyond his control, he shall send it within 4 days after the extraordinary circumstance causing the delay ceases to exist.
If the person proves that he has sent notice within the time limit set forth in Article 89, he is considered to have complied with the time limit for notice. |
| Article 93 |
（Effects of negligence in the delivery of notices）If a person fails to give notice within the time limit set forth in Article 89, he may still exercise his right of recourse except that he shall be liable for damages in case any damage arises from his failure to give notice. The amount of damages, however, may not in any case exceed the amount payable by the bill. |
| Article 94 |
（Exemption for the formulation of the rejection certificate）The drawer or an endorser of a bill may insert in the bill a waiver of protest.
If the drawer makes the insertion referred to in the preceding paragraph, the holder may, in case of dishonor, exercise his right of recourse without first applying for a protest. If, however, the holder still applies for a protest, he shall himself bear any expense thereby incurred.
If an endorser makes the insertion referred to in paragraph 1, the insertion is operative insofar as concerns that endorser only. If the holder chooses to have a protest made, he may claim against other signatories to the bill reimbursement of the expense thereby incurred. |
| Article 95 |
（Obligations for providing notifications）In spite of the waiver of protest inserted in a bill, the holder shall still present the bill for acceptance or payment within the prescribed time limit. If, however, it is contended that the holder has not presented the bill for acceptance or payment, the person making the contention shall bear the burden of proof. |
| Article 96 |
（Responsibilities of the bill debtor）The drawer, the acceptor, the endorser or endorsers, and all other persons liable on a bill are jointly and severally liable to the holder.
The holder may exercise his right of recourse against any or several or all of the persons liable on the bill, as referred to in the preceding paragraph, irrespective of order of liability.
If the holder has exercised his right of recourse against one or several of the persons liable on the bill, he may still exercise his right of recourse against any remaining person or persons liable on the bill.
If a person against whom the holder exercised his right of recourse has discharged his liabilities by payment, he then acquires the same rights as the holder. |
| Article 97 |
（Entitled recourse amount）When exercising his right of recourse against any person liable on a bill, the holder is entitled to claim the following sums of money:
1. The amount payable by the bill dishonored by non-acceptance or non-payment and the interest thereon, if any has been agreed upon.
2. Interest computed at the rate of 6 percent per annum from the date of maturity, if no interest rate has been agreed upon.
3. Expenses incurred in making protest and giving notice of dishonor and other necessary expenses.
If payment is made before the date of maturity, interest from the date of payment to the date of maturity shall be deducted from the amount payable by the bill. In the absence of an agreed rate, interest shall be computed at the rate of 6 percent per annum. |
| Article 98 |
（Recourse amount）A person who discharges his liabilities on a bill by payment in accordance with Article 97 is entitled to claim against the acceptor or any party prior to him the following sums of money:
1. The total amount paid under the bill.
2. Interest on the amount referred to in the preceding subparagraph.
3. Necessary expenses incurred in connection with the discharge.
If the drawer discharges his liabilities by payment in accordance with Article 97, he is entitled to claim against the acceptor the sums of money as specified in the preceding paragraph. |
| Article 99 |
（Recourse for return endorsement bill）If the holder is concurrently the drawer, he has no right of recourse against any party prior to him.
If the holder is concurrently the endorser, he has no right of recourse against any party subsequent to his endorsement. |
| Article 100 |
（Rights of the person against whom the holder exercised the right of recourse）When a person liable on a bill discharges his liabilities by payment, the holder shall surrender the bill and the protest, if any.
When a person liable on the bill discharges his liabilities by payment as set forth in the preceding paragraph, the holder shall issue and deliver a receipt and a statement of interest and expenses paid, if any.
When an endorser discharges his liabilities on a bill by payment, he may strike out his own endorsement and those of parties subsequent to him. |
| Article 101 |
（Recourse for partial acceptance）If a part of the amount of a bill is accepted, the person who discharges the unaccepted part of the bill by payment may require the holder to note the fact on the bill, and to issue and deliver a receipt for his payment separately together with a duplicate of the bill and the protest. |
| Article 102 |
（Recourse for the issuance of return endorsement bill）A party to a bill who has the right of recourse may issue and draw on the drawer, one of the prior endorsers, or any other person liable on the bill, a demand bill payable at the place where such person is domiciled. But this provision shall not apply if there exists an agreement to the contrary.
The amount of the bill drawn pursuant to the preceding paragraph may, in addition to the sums specified in Articles 97 and 98, include a commission charge and stamp duty. |
| Article 103 |
（Decision on the amount of the return endorsement bill）When the holder draws a bill pursuant to Article 102, the amount of the bill shall be determined in accordance with the market value of a demand bill drawn at the place of payment of the original bill and payable by remittance at the place where the party prior to him is located.
When an endorser draws a bill pursuant to Article 102, the amount of the bill shall be determined in accordance with the market value of a demand bill drawn at the place where the endorser is located and payable by remittance at the place where the party prior to him is located.
The market value referred to in the preceding two paragraphs shall be the market value prevailing on the day of drawing. |
| Article 104 |
（Loss of right to recourse）If the holder fails to perform the acts necessary to the exercise and preservation of his rights in the bill within the time limits set forth in this Act, he shall lose his right of recourse against all parties prior to him.
If the holder fails to perform the acts referred to in the preceding paragraph within an agreed time limit, he shall lose his right of recourse against the party prior with whom he made the agreement. |
| Article 105 |
（Response for force majeure incidents）If the holder is prevented from making presentment for acceptance or payment within the prescribed time limit by circumstances beyond his control, he shall give immediate notice of the fact to the drawer, the endorser or endorsers, and all other persons liable on the bill.
The provisions of Articles 89 to 93 shall apply mutatis mutandis to the notice referred to in the preceding paragraph.
The holder shall present the bill to the drawee as soon as the extraordinary circumstance causing the delay ceases to exist.
If the extraordinary circumstance extends over 30 days after the date of maturity, the holder may exercise his right of recourse forthwith without being required to make presentment or protest.
If a bill is payable at sight or at a fixed period after sight, the 30-day time limit referred to in the preceding paragraph shall begin to run from the day the holder gives notice to the party prior to him. |