Provisions of the Supreme People's Court on Several Issues Concerning the Trial of Bills Dispute Cases
Article 1 Disputes arising from the exercise of negotiable instrument rights or non-negotiable instrument rights in the negotiable instrument law shall be accepted by the people's court according to law.
Article 2 In accordance with the provisions of Article 10 of the Negotiable Instruments Law, if the debtor of a bill (i.e. the drawer) brings a lawsuit on the grounds that the underlying relationship of the bill is illegal when it is not transferred, the two parties have no real trading relationship and creditor-debtor relationship, and the holder pays the consideration but fails to pay it, the people's court shall accept it according to law.
Article 3 In accordance with the provisions of Article 36 of the Negotiable Instruments Law, if a bill of exchange is refused to be accepted or paid, or a bill or cheque is endorsed and transferred after the time limit for presentment for payment expires, and the endorsee brings a lawsuit with the endorser as the defendant, the people's court shall accept it according to law.
Article 4 The people's court shall not accept the case if the holder refuses to bring a lawsuit without exercising the right of payment and recourse first. Except for the circumstances listed in the second paragraph of Article 61 of the Negotiable Instruments Law and Article 3 of these Provisions, the holder can only exercise the right of recourse if he exercises the right of payment to the drawee first and fails to pay.
Article 5 The right of claim for payment is the first-class right enjoyed by the holder, and the right of recourse is the second-class right enjoyed by the holder, that is, the holder's right to request the endorser, drawer and other bill debtors to pay the amount and expenses listed in the first paragraph of Article 70 of the Bill Law when the bill is refused to pay at maturity or under the circumstances listed in the second paragraph of Article 61 of the Bill Law.