1. Legal classification
The legal classification of bills varies due to different legislations in different countries. The British “Bills of Exchange Act” divides bills into three types: bills of exchange, promissory notes and checks. The US “Uniform Commercial Code” divides bills into four types: bills of exchange, promissory notes, checks and deposit slips. my country’s “Bills of Exchange Law” divides bills into three types: bills of exchange, promissory notes and checks. Although there are differences in legislation in different countries, it is generally believed that bills should be divided into three types: bills of exchange, promissory notes and checks.
2. Theoretical classification
The theoretical classification of bills also varies due to different classification standards. Common classifications are as follows.
Self-paid bills and entrusted bills
According to whether the drawer pays the bill directly, bills can be divided into self-paid bills (reserved bills) and entrusted bills. Self-paid bills refer to bills that the drawer is also the payee and must unconditionally pay the bills issued by it, such as promissory notes. Entrusted bills refer to bills that the drawer does not act as the payee himself, but records others as the payee on the bill, such as bills of exchange and checks.
In a self-pay bill, there are only two basic parties, namely the drawer and the payee. The drawer must be responsible for the bill, that is, the holder should directly request the drawer to pay. In a commissioned bill, there are usually three basic parties, namely the drawer, the payee and the payee (payee). Only when the payee entrusted by the drawer refuses to pay, the drawer is responsible for the bill, that is, the holder should directly request the payee to pay.
Payment bills and credit bills
According to the credit of the bill, the bill can be divided into payment bills and credit bills. Payment bills refer to bills that are unconditionally payable upon sight with a financial institution as the payee, such as checks. Credit bills refer to bills that the holder of the bill accepts before the due date of the bill, trusting the credit of the drawer, such as bills of exchange and promissory notes. There is only one due date for payment bills (checks), that is, payable on sight, and the holder can request the bank to pay at any time. Checks can only be issued under the condition of having funds (bank deposits), otherwise it will constitute a bad check, and the issuer will bear civil compensation, criminal or administrative liability for this. The maturity date of a credit note can be either immediate (payable on sight) or forward, and the holder can only request payment after the maturity date. The use of this type of note is not restricted by the availability of funds, that is, when issuing a forward note, there can be no funding relationship.
Registered notes, bearer notes, and order notes
According to the way the bill records the right holder, the bill can be divided into registered notes, bearer notes, and order notes. A registered note refers to a note that clearly states a specific person as the right holder. A bearer note refers to a note that does not state the name of the right holder, but only records the “holder” or “the person who comes” as the right holder. An order note refers to a note that states “a specific person or a person designated by him” as the right holder. The drawer of a registered note can indicate the words “not transferable” on the note, thereby restricting the circulation of the note. A bearer note can be transferred by direct delivery, and an order note must be transferred by endorsement and delivery. The drawer may not indicate “not transferable”.