Selected Cases by Article & Issues
(1) If a monetary obligation is expressed in a currency other than that of the place for payment, it may be paid by the obligor in the currency of the place for payment unless
(a) that currency is not freely convertible; or
(b) the parties have agreed that payment should be made only in the currency in which the monetary obligation is expressed.
(2) If it is impossible for the obligor to make payment in the currency in which the monetary obligation is expressed, the obligee may require payment in the currency of the place for payment, even in the case referred to in paragraph (1)(b).
(3) Payment in the currency of the place for payment is to be made according to the applicable rate of exchange prevailing there when payment is due.
(4) However, if the obligor has not paid at the time when payment is due, the obligee may require payment according to the applicable rate of exchange prevailing either when payment is due or at the time of actual payment.
|1||Monetory obligation expressed in currency different from that of place for payment|
|1.1||May be paid in currency of place for payment||2|
|1.2.1||Currency of place of payment not freely convertible|
|220.127.116.11||Exception from "effectivo-clause"|
|2||Rate of exchange between currency of account and currency of payment||2|
|2.1||Rate prevailing when payment is due||1|
|2.2||In case of default by obligor, obligee's option between rate prevailing when payment is due and rate at time of actual payment||1|