Endorsement

The bill vitality lies in negotiability that is be found in the rules of indorsement. The main function of indorsement is the bills right assignment. With development of economy , indorsement by procuration and indorsement of pledge come forth. Contrasting to characters of other commercial instrument acts, indorsement is unconditional inseparable and can be forbidden. On the other hand, the character of indorsement also differ from usual creditor's right assignment because the bill right is creditor's monetary claim. According to different indorsemeht aims,indorsement can be classified transferable indosement and nontransferable indosement. There are two questions should be discussed in the rules of indorsement of pledge .The first is effective element on this kind of indorsement. The indorsement of pledge must be done in way of indorsement and be marked "pledge"in the note. At the same time , it's necessary to deliver the note to endorsees. The second question is that the forbidden transferable indosement can not be indorse for pledge.