There are three basic parties involved in a bill, namely the drawer, the payee (payee) and the payee (payee). After the bill enters the circulation field, other parties are derived, such as endorsers, endorsees, guarantors and holders.
1. Drawer
The drawer is the person who opens, issues and delivers the bill. Once the bill is issued, the drawer shall be responsible for guaranteeing the payment or acceptance of the bill upon presentation to the payee and the holder in good faith. If the bill is dishonored, the drawer shall be liable to pay the bill to the holder or any endorser who is forced to pay when the drawer is pursued. The drawer is the principal debtor before the payment of the bill at sight or the acceptance of the bill at a later date, and the subordinate debtor after the acceptance of the bill at a later date.
2. Payee
The payee is the person who collects the bill, the first person to own the bill, that is, the first holder, and becomes the principal creditor of the bill when he obtains the bill. The rights of the payee to the bill include the right to request payment and the right of recourse. In addition, under normal circumstances, the payee also has the right to transfer the bill to others by endorsement.
3. Drawee
The drawee is the person who accepts the bill and the payment order or payment commission, also known as the drawee. Before the drawee signs on the bill, he is not the debtor of the bill and does not bear the payment responsibility of the bill. When the drawee agrees to accept the order of the drawee and expresses acceptance on the front of the bill, he becomes the acceptor. He uses his signature to indicate that he agrees to execute the unconditional order issued to him by the drawee and guarantees his own payment on the due date according to his own acceptance clause. Once the drawee accepts the bill and signs to become the acceptor, he becomes the principal debtor of the bill and bears the responsibility of paying the bill on maturity, while the drawee retreats to the position of the secondary debtor.
4. Endorser
The endorser is the person who signs on the back of the bill to transfer the bill to others. After the payee endorses, he becomes the first endorser. The endorser is the debtor of the bill and is responsible for guaranteeing that the bill held by the subsequent holder will be accepted and paid. If the bill is refused payment, the endorser shall be responsible for paying the bill to the holder or the subsequent endorser who is forced to pay.
5. Endorser
The endorsee (endorsee) refers to the person who accepts the transfer of bill rights. He is the creditor of the bill and has the right to request payment and the right of recourse. When the endorsee transfers the bill again, he becomes another endorser. The final endorsee must be the holder.
6. Guarantor
The guarantor (guarantor) refers to the person who provides guarantee for the behavior of the bill debtor and signs on the bill. He is a third party other than the bill debtor. The guarantor and the guaranteed bear the same responsibilities.
7. Holder
The holder (holder) refers to the person who owns the bill, including the payee who owns the bill or the endorsee who accepts the transfer of the bill.