The Exercise Of The Right Recourse Of Negotiable Instrument

People use the bill frequently by its convenient in commodity exchange and finance activities. The bill has the characteristic of high technical and serviceable broad. The bill right realizes normally by the way that issues the bill by the drawer, endorses the transfer after the endorser, the endorser exercise the bill right finally as the legitimate bearer to realizes the bill payment. But, during this period of time from the receipt to pay money the bill debtor is unable or not willing to pay money. When the legitimate bearer cannot carry the drawee from the bill to obtain the payment, he can presses for payment to his first hand through this reversion way to realizes the bill right.The bill's most essential feature is the liquidity. In the merchandise trade and the finance activities, the more times of bill circulating, the more the amount of cash are saved. But the risk increases with the times of bill circulating too. The bill recourse system is established to maintain the transaction security along with the endorse system's production.As a special system, bill recourse is meaningful to maintain safe and accelerate circulation of bill.This paper makes a summary analysis about the bill recourse potency and the existence question on the bill recourse and compares Geneva "Convention on the Unification of the Law Relating to Bills of Ex-change and Promissory Notes" , Geneva " Convention Providing a Uniform Law of Cheques " , " American Uniform commercial code " and " Convention on International Bill of Exchange and International Promissory Note of the United Nations " exercises the aspect legislation in the bill recourse with our country's similarities and differences. This paper consists of four parts.The first part is the bill recourse overview. Based on the bill concept and the characteristic, this part discusses to the bill recourse potency influence factor on the aspect of the bill characteristic and the bill recourse's connection. The bill includes completely negotiable securities, right supposing securities, the type negotiable securities, the meaning negotiable securities, without reason, circulation negotiable securities and so on. This paper elaborates the relations about bill recourse and those characters of the bill. It elaborates the bill recourse litigant and the bill recourse significance.The second part describes necessary conditions of the bill recourse exercises. This necessary condition includes the essential and forms requirements. The section of essential requirements focuses on the special circumstances of recourse exercises such as recourse before as scheduled, the right of recourse of after-endorsement and so on. In some the legal situation, like attaches when qualified acceptance, completely or the part refusal of acceptance, the bill obligee may exercise the recourse before as scheduled. The section of forms requirements focuses on the prompt and making the rejection certificate. The prompt divides into the prompt accept and the prompt payment. The bearer needs to prompt in prescribed period. Otherwise the recourse will lose. When certain legal matters occur, the bearer can preserve the recourse without prompt. " Convention on International Bill of Exchange and International Promissory Note of the United Nations" , Geneva " Convention on the Unification of the Law Relating to Bills of Ex-change and Promissory Notes " , " Convention Providing a Uniform Law of Cheques " , " American Uniform commercial code " also has the similar stipulation. The form of rejection proving includes rejection certificate and the reason book of returning ticket. Various countries had stipulated the necessary items of the rejection certificate. But our country does not, in explanation along with international universal law.The third part is the potency question of the bill recourse exercises. Here elaborated the invalid bill, the re-endorsement recourse question and the effectiveness to the recourse potency influence. The bill invalid is the bill does not have the legal requirement of form, not short of the essence requirement. The absolute invalidity bill's possessor do not advocate the bill right, the bill possessor do not have the payment request power also not enjoy the bill recourse. But the bill is partial invalidity, did not affect other parts of potencies, the bearer still might exercise the bill right, namely recourse. Endorses is one way of transfer bill rights. The bill after endorsing will also cause presses for payment after the circulation. Re endorsement's characteristic was in the bill original debtor (including drawer, endorser, acceptor, guarantor) has become the bill creditor (bearer). Re endorsement has the similar power potency with the general transfer endorses of the transfer, the proof and the guarantee.Re-endorsement's recourse question is divided into several situations: When the bill process endorses returns the drawer, the bearer before his/her hand does not have the recourse, namely formerly possessed the debtor who endorses in the bill or signs, does not bear the guarantee responsibility to him, the bearer only enjoys to acceptor's payment request power; When bearing a bill processor artificial endorser, to this endorser's subsequent party being without recourse; When the bill goes through many places circulates hand of the acceptor, the acceptor takes the reality bearer, does not have the recourse to all people.When guarantor or acceptance by intervention artificial bearer, besides to is exercised by the guarantor or by the attendant the recourse, with is guaranteed or is been same by attendant's situation. Our country negotiable instruments law stipulated that drawer when becomes the bearer according to re endorsement, if this bill refusal of acceptance or refuses to pay money, this drawer before his/her hand does not enjoy the recourse. After the endorser becomes the bearer, does not enjoy the recourse to its subsequent party.In the process of pressed for payment the drawer, even if becoming the bearer before other people discharge, also does not enjoy the recourse. Obviously, the recourse is the right that the bearer exercises forward, cannot exercise to the subsequent party. The bill right effectiveness limitation refers to the bill right negative prescription. According to our country Negotiable Instruments Law, the bearer does not exercise or preserves the bill right in the stipulation deadline, usually will lose before his/her hand's recourse.If obligee does not exercise the bill right in certain time, the bill debtor may depend on the bill obligee to surpass the bill effectiveness to refuse to fulfill the bill duty. If the bearer lose his/her before hand's recourse, will have caused its safeguard scope reduction. Therefore, carries on presses for payment by safeguards the right in the most widely range is as far as possible promptly the bearer must perform to pay attention.The fourth part is about other questions about the bill recourse exercises, including the relations of bill recourse and the bill responsibility and the question about the payment amount of bill recourse. The bill responsibility is the duty of bill debtor that must the pay to the bearer according to the bill amount. The bill responsibility is produce when the bearer exercises the payment request or the bill obligee exercises the recourse. In present stage, in our country, the economic system is not very perfect. Compared with the world bill development's history, our country's bill practice time is very short.Because no ability to protect the bill credit, the trade bill is difficult to be used and promoted in a period. To solve these practice problems, the bill liability system must be clear about in the legislation. It must be cleared which people is the bill debtor, under which conditions he must undertake the responsibility, and under which conditions he can't contradict.According to the Negotiable Instruments Law of our country, the bill liability system includes the following three important aspects. The first, the person signed in the bill (including drawer, endorser, acceptor, guarantor) is the bill debtor explicit, he must undertake the bill responsibility and defer to the item which recorded in the bill. The second, the bank draft drawee or the acceptor, the promissory note drawer is the bill main debtor who has unconditionally the payment sum responsibility. The bank draft and the check drawer and the guarantor, the bank draft, the promissory note and the check endorser and the guarantor have the guarantee to accept with the aval responsibility. The drawer, the endorser, the acceptor, the guarantor have the association responsibility. The third, the limit of contradicts right of bill debtor. Only if the bearer obtains the bill with the evil intention or the gross negligence, the bill debtor cannot refuse to fulfill the bill debt with the matter contradict between to the drawer, also cannot refuse to fulfill the bill debt with the matter contradict between to the bearer.