Endorsement can be divided into transfer endorsement and non-transfer endorsement. Transfer endorsement can be divided into special endorsement and blank endorsement.
(1) Special endorsement, also known as registered endorsement or full endorsement, is a form of endorsement in which the endorser first records the name of the endorsee and then signs. For example:
Pay to the order of B Co., New York
or Pay to B Co., or Order, New York
or Pay to B Co., New York
For A Company, London.
Signature
For example, the endorsee B Company can continue to transfer the bill by endorsement and delivery, but the continuity of the endorsement should be maintained. For example, a bill with Company A as the payee is transferred to Company E through three companies, B, C, and D, and Company E is the final holder.
In this example, for the holder E, all previous endorsers D, C, B, A and the drawer are his prior parties; and for the beneficiary A, all subsequent transferees B, C, D, E after his delivery or transfer are his subsequent parties. When the parties to the bill exercise the right of recourse, only the subsequent party can seek recourse from the prior party, while the prior party cannot seek recourse from the subsequent party. The prior party has the guarantee responsibility to guarantee that the bill will be accepted and/or paid to the subsequent party.
(2) Blank endorsement (blank endorsement/endorsement in blank), also known as bearer endorsement, is an endorsement that does not record the name of the endorsee. After the endorser signs and seals on the back of the bill, the transfer is completed by delivering the bill to the transferee.
Let’s use the above example to explain. Assuming that Company B endorses the bill in blank to Company C, Company C, as the holder of the blank endorsement, can: ① Transfer the bill directly to Company D; ② Directly record the transferee Company D as the endorsee of the blank endorsement to form a complete endorsement (note that in this case, Company C will not bear any responsibility for the bill because it did not sign the bill); ③ Company C makes another blank endorsement to transfer the bill to Company D; ④ Company C adds its own name to the endorsee of the blank endorsement to form a complete endorsement before endorsing and transferring it. my country’s Bills of Exchange Law prohibits the use of blank endorsements, but most foreign bills of exchange laws allow this form of endorsement.