The bill protest is a document with which a notary or bailiff certifies that the bill of exchange in question was unsuccessfully presented for acceptance or payment at the place of payment at the due date . The bill protest must be documented on the bill itself or on a sheet associated with the bill and provided with an official seal. Up until Post Reform II , bill protests could also be submitted via the Deutsche Bundespost in the form of a postal protest order .
The raising of a bill protest is a fundamental requirement for recourse against other parties obliged to bills (bill issuers, endorsers or bill guarantors). The protest can only be waived if the relevant bill of exchange contains a protest waiver clause (e.g. "without protest") or insolvency proceedings have already been opened against the drawee's assets . According to Art. 45 Bill of Exchange Act, the last holder of the bill of exchange is obliged to inform his immediate foreman and the issuer of the bill of exchange within four working days of the protest being raised. If the timely notification is neglected, the right of recourse is not lost, but the bill holder concerned is then liable for any damage caused by this negligence.
Forms of bill protest
- Protest for lack of payment upon expiry
- can be charged if the bill of exchange is not paid when presented on the first or second working day after the expiry date
- Protest for lack of payment before expiry
- can be levied on the drawee's assets even before the bill of exchange is due in the event of insolvency or fruitless foreclosure .
- Protest for lack of acceptance
- can be charged during the entire term of the bill of exchange up to the expiry date of the bill of exchange if the bill of exchange is not accepted ( accepted ) by the drawee .
- Wall protest
- can be charged if the drawee cannot be found at the specified place of payment when the bill of exchange is presented.
- Wind protest
- is to be levied, however, if it turns out upon presentation of the bill of exchange that the business premises of the drawee are not at the place indicated in the bill of exchange.