What is the prohibition of endorsement? What is the effect of prohibiting endorsement? Can commercial bills prohibited from endorsement be discounted and re-endorsed by pledge?

The so-called "prohibition of endorsement" refers to the legal restrictions on the right of the parties concerned to transfer the bill. China's "Negotiable Instruments Law" stipulates in Articles 27 and 34 that the drawer and endorser are forbidden to endorse.

if the drawer records the words "non-negotiable" on the front of the bill, the bill will lose its circulation, and even if the bill is transferred, it will not have the legal effect of the bill, and the transferee will not enjoy the rights of the bill. If the endorser records the words "non-negotiable" in the endorsement column, it will not make the bill lose circulation. Its effect only lies in that the endorser is only liable to the immediate endorsee, and all subsequent parties, including the later endorsee, endorser and the last holder, are not liable for guarantee. A commercial bill marked "non-negotiable" by the drawer cannot be discounted by the bank, nor can the holder make a pledge endorsement and apply for a pledge loan from the bank. Articles 53 and 54 of the Provisions of the Supreme People's Court on Several Issues Concerning the Trial of Bills Disputes have made similar provisions. The holder of a commercial bill marked "non-negotiable" by the drawer shall not enjoy the rights of the bill after discount or pledge; A commercial bill with the words "non-negotiable" written by the endorser shall not be exercised by the holder after discount or pledge.