Colombian Commercial Code - Decree 410 of 1971 - Book IV - Of Contracts and Corporate Obligations - Title XII - Current Account - From: Section 1245 to: 1261 Art

TITLE XII

CURRENT ACCOUNT

Section 1245 .- Under the contract of current account credits and debits from remittances agreement of the parties shall be considered as an indivisible part of credit or debit the account of each account holder, so that only the remaining balance at the close of the account shall constitute a claim.

The closure and liquidation of the account in the periods of closure does not cause the termination of the contract, except in cases provided for in Article 1261.

Section 1246 .- All dealings between merchants domiciled or not in the same location or between a merchant and who is not transferable and all the property values ​​may be the subject of the current account.

Not be included in current account credits that are not countervailable.

Section 1247 .- Unless expressly stated otherwise, when the contract is concluded between firms, be excluded from the credit account to the respective foreign company.

They will also be foreign to the current account sums or securities affected a particular destination or to be taken to order the sender.

Section 1248 .- Before closing the account, none of the stakeholders will be considered as a creditor or debtor.

Section 1249 .- The closure of the account and the balance is paid on time will be established in the contract or by custom, and in default one and another every six months from the date of the contract.

Section 1250 .- The account balance will be payable at sight, if the contract provides otherwise.

Unless otherwise provided, if required payment within fifteen days following the closing, the balance will be considered first batch of a new account and the contract shall be renewed in accordance with the provisions of the preceding article.

Section 1251 .- The balance, however led to a new account, cause the agreed interest and, failing that, the commercial law firms.

Section 1252 .- Each of the certified values ​​produce a current account interest, unless otherwise specified.

Section 1253 .- Both commissions for business and reimbursement costs incurred in the operations resulting remittances are included in the account, unless otherwise specified.

Section 1254 .- Remittances in current account are not attributable to the payment of items that it includes.

Section 1255 .- The inclusion of credit in the current account does not exclude actions or exceptions relating to the validity of the acts or contracts from which the consignment unless otherwise agreed.

If the act or contract is annulled the corresponding item in the account will be canceled.

Section 1256 .- If a credit included in the account is protected by collateral or personal, the account holder will be entitled to avail himself of the security for the existing balance in his favor at the close of the account and to crowd the secured claim.

The same rule applies if there is a joint debtor.

Section 1257 .- The inclusion of a claim against a third party is deemed made under the clause "except for cash income," if not set anything other than the parties. In this case, if the credit is not satisfied, you receive the shipment have the choice between action to collect or remove the item from the account reinstated in their rights to him who made the shipment.

Exercise fruitless actions against the debtor shall not deprive the account holder the right to remove the game.

Section 1258 .- The eventual balance of a checking account may be seized and prosecuted in court by creditors of the parties equally or bonds may be assigned.

Section 1259 .- The summary or statement of account, sent by an account holder to another, shall be deemed adopted if not rejected within the agreed term or usual, or, failing both, within fifteen days of its receipt.

Passage of the bill does not preclude the right to challenge for computational errors, omissions or duplications. The challenge action will expire six months from the date of receipt of the summary, which should be sent by registered mail, or upon receipt.

Section 1260 .- Remittances in currency or foreign currency will be settled at the rate applicable on the date the inscription to be made of credit in the account.

Section 1261 .- The current contract has terminated:

1. On expiry of the agreed period;

2. By agreement of the parties;

3. By the (bankruptcy) * one of the account holders;

4. A lack of agreed time, any account holders may at each time of closing, rescind the contract by giving notice at least ten days prior to the date thereof, and

5. In case of death or disability of a party if his heirs or representatives, or other account holder, opt for completion within thirty days following the occurrence of the event.

* Open compulsory liquidation proceedings.