ich it is bound to apply by virtue of international agreements to which it is a party.
2.- (a) If, by virtue of the application of paragraph 1 of this article, an instrument drawn in a currency which is not that of the place of payment must be paid in local currency, 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 presentment ruling at the place where the instrument must be presented for payment in accordance with subparagraph (g) of article 55.
(b) (i) If such an instrument is dishonoured by
non-acceptance, the amount payable is to be calculated, at the
option of the holder, at the rate of exchange ruling on the
date of dishonour or on the date of actual payment.
(ii) If such an instrument is dishonoured by non-payment,
the amount is to be calculated, at the option of the holder,
according to the rate of exchange ruling on the date of
presentment or on the date of actual payment.
(iii) Paragraphs 4 and 5 of article 75 are applicable
where appropriate.
Section 2
DISCHARGE OF OTHER PARTIES
Article 77
1.- If a party is discharged in whole or in part of his liability on the instrument, any party who has a right on the instrument against him is discharged to the same extent.
2.- Payment by the drawee of the whole or a part of the amount of a bill to the holder, or to any party who takes up and pays the bill, discharges all parties of their liability to the same extent, except where the drawee pays a holder who is not a protected holder, or a party who has taken up and paid the bill, and knows at the time of payment that the holder or that party acquired the bill by theft or forged the signature of the payee or an endorsee, or participated in the theft or the forgery.
CHAPTER VII - LOST INSTRUMENTS
Article 78
1.- If an instrument is lost, whether by destruction, theft or otherwise, the person who lost the instrument has, subject to the provisions of paragraph 2 of this article, the same right to payment which he would have had if he had been in possession of the instrument. The party from whom payment is claimed cannot set up as a defence against liability on the instrument the fact that the person claiming payment is not in possession of the instrument.
2.- (a) The person claiming payment of a lost instrument must state in writing to the party from whom he claims payment:
(i) The elements of the lost instrument pertaining to the
requirements set forth in paragraph 1 or paragraph 2 of
articles 1, 2 and 3; for this purpose the person claiming
payment of the lost instrument may present to that party a
copy of that instrument;
(ii) The facts showing that, if he had been in possession
of the instrument, he would have had a right to payment from
the party from whom payment is claimed;
(iii) The facts which prevent production of the
instrument.
(b) The party from whom payment of a lost instrument is claimed may require the person claiming payment to give security in order to indemnify him for any loss which he may suffer by reason of the subsequent payment of the lost instrument.
(c) The nature of the security and its terms are to be determined by agreement between the person claiming payment and the party from whom payment is claimed. Failing such an agreement, the court may determine whether security is called for and, if so, the nature of t
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