Although bill pledge financing has corresponding disputes, it also has its unique advantages!

    At present, bill pledge has become a way of bill financing. However, compared with the development of bill pledge business, the laws and legal principles of bill pledge in our country are not mature enough, and there is a situation of binary separation. The pledge of bills is dual in nature. It can neither be separated from the theoretical basis of security interest nor ignore the technical characteristics of bills. The pledge of bills is first and foremost a pledge of rights, which is a kind of security and real right, and is regulated by the Security Law and the Property Law. Secondly, the subject matter of pledge—the bill is special, and the pledge of bills, as a kind of bill behavior, is constrained by the essential, literal, and causal nature of bills, and the meaning of pledge must be completely and accurately reflected in the notes on the bill. Therefore, the pledge of bills cannot be separated from the adjustment scope of the "Negotiable Instruments Law". Regarding the pledge of negotiable instruments, the Property Law, the Guarantee Law and the Negotiable Instrument Law have all made relevant provisions, but there are conflicts in the contents. Conflicts in legal norms have exacerbated the differences between theory and practice. Disputes over pledge of bills have exploded in a period of time, but the courts have diametrically opposed judgments on similar issues. The inconsistency of legal norms, especially the very different judgment results, makes people have to consider the corresponding risk of bill pledge when using bills to pledge. How to avoid risks has also become an urgent problem to be solved in pledge financing.


1. Advantages of       
    Bill Pledge Financing Bill pledge financing has two advantages: First, the requirements for reviewing the basic relationship of bills are looser than bill discounting; second, the cost is low. In recent years, commercial banks have done a lot of homework on bill pledge financing, showing a diversified business development trend: the first trend is to carry out bill pool pledge financing business, which combines bill custody and bill pledge financing to revitalize bills. Assets, represented by commercial banks such as Industrial and Commercial Bank of China and China Construction Bank; the second trend is to develop bill pledge trust financing business, and develop bill pledge financing into a bank’s wealth management product, represented by Agricultural Bank, which not only facilitates short-term financing of enterprises, but also To meet the needs of customers for short-term wealth management; the third is to strengthen and highlight the bill pledge financing business, making it one of the main businesses of bill financing, mainly small and medium-sized commercial banks such as Bank of Quanzhou and Bank of Inner Mongolia.    
    
2. Disputes over pledge of bills continue to increase
    With the increase in the volume of commercial banks' bill pledge financing business, the corresponding disputes also gradually increased. Through the retrieval of the magic weapon database of Peking University, among the civil, commercial and economic cases, there are 37 cases involving the pledge of bills, of which 2 are included in the Gazette of the Supreme People's Court, 13 are classic cases, and 22 are ordinary cases. Among these 37 cases, some cases are the same case, and some cases involve the pledge of bills, but the disputes are not caused by the pledge of bills, but are only general guarantee cases, so there are actually 25 cases with reference value. The author takes these 25 cases as samples, removes the special circumstances of specific cases, and divides these disputes into the following two categories by sorting out and comparing:
    
1. Disputes caused by the inability to realize the pledge of bills
    This type of disputes mainly includes two situations: Disputes caused by the failure to receive the acceptance in the due date, and disputes caused by the failure of the drawer to report the loss of the right to cancel the pledge after the bill is pledged. There are 3 such representative cases.


2. Disputes arising from the establishment of the pledge of bills
    Such disputes focus on whether the pledge of endorsed bills without the word "pledge" can be established, and whether the pledge of bills with the word "pledge" is valid. In the case of endorsement, whether the pledge of the bill is valid or not. There are 10 such representative cases.


3. Dualization of endorsement effect of bill pledge

    Regarding the dualization of the requirements for the establishment of bill pledge, another aspect also reflects the dualization of the effectiveness of pledge endorsement. Article 55 of the Ruoyu Regulations on Dispute Cases on Negotiable Instruments establishes that pledge endorsement is an effective condition for instrument pledge. However, on the contrary, Article 98 of the Judicial Interpretation of the Guarantee Law stipulates: "Pledged by a bill of exchange, check or promissory note, the pledgor and the pledgee do not endorse the word "pledge". The people's court shall not support it." According to the provisions of this judicial interpretation. The pledge endorsement is not a valid requirement for bill pledge, but a requirement against a third party. Although there is no pledge endorsement, it is still binding on the parties to the pledge, but the effect cannot reach a third party. Can't fight against a bona fide third party. What is even more difficult is that the promulgation and implementation of the two laws and judicial interpretations are very similar, and they are not enacted successively, so there is no opportunity to discover legal loopholes and coordinate legal conflicts through practice. There are many hidden dangers in the settlement of disputes.

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