K. BILLS OF EXCHANGE, CHEQUES AND OTHER DOCUMENTS
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39. If the Bank credits or discounts a bill of exchange or other security for the Client, the Bank may debit Client’s account for such amount if the bill of exchange or other security is not paid. The Bank may also debit the Client’s account if the bill of exchange or other security is payable in a foreign country. The Bank may debit the Client’s account for debits and charges against the Bank by the third party in a foreign jurisdiction or due to forgery or formal defects on bills of exchange and cheques.

40. The bank pays or discounts the cheque only after receiving the cover for the cheque from the issuing bank.

41. However, the Bank reserves the right to make any claim for the payment of those bills of exchange, cheques or other securities including other claims against any party obliged by such bill of exchange, cheque or other security until the full payment of these obligations.

42. The Bank may debit a bill of exchange, cheque or any other security presented to or discounted by the Bank to the Client's account before such documents become due, when:

(i) the Bank is not provided with the information to the full satisfaction of the Bank with respect to the party obligated to pay on such bill of exchange;

(ii) such party has protested to pay or accept the other bills of exchange, cheques or other securities;

(iii) there has been a material adverse change in the financial situation of this party.

43. The Bank may debit the Client’s current account even if a bill of exchange, cheque or any other security cannot be returned. However, the Bank shall try to collect the amount of such non-returned bill of exchange, cheque or other security or the Bank assigns the claims resulting therefrom to the Client.

44. If the Bank obtains payment in another currency than the one designated on the respective bill of exchange, cheque or other security, the Bank may debit Client’s current account for any loss due to the exchange rate differences.

45. By submitting the bill of exchange to the Bank, the Client hereby transfers to the Bank the claim which serves as a basis for acquiring right to the ownership deriving from the initial transaction pursuant to which the bill of exchange was initially issued, whether existing at present or in the future, including any warranties made or arising from this transaction. Bank may request the Client to submit any document confirming such transfer. If applicable, this Article shall also govern the collection of other securities.

46. The funds necessary to cover the bill of exchange to be accepted by the Bank for the account of the Client must be received not later than a banking day preceding the due date of such bill of exchange. In case this condition is not fulfilled the Bank shall charge a fee for late payment.

47. The Bank will pay on the bills of exchange made payable to it only if the Client has provided the Bank with the adequately detailed written instructions regarding this matter in sufficient time to permit the Bank to act thereon and has provided for the funds necessary for the payment.