Article 57 When paying a bill， the payer or his agent shall check the continuity of the series of endorsement， as well as checking the legitimacy of the identification of the person presenting the bill， or the validity of that person's certificates.
In cases where the payer or his agent make a payment out of malice or with gross negligence， they alone shall bear liability.
Article 58 In cases where the payer pays a bill before maturity which is payable on a fixed day or on sight within a fixed period， he alone shall bear liability.
Article 59 When the sum on a bill is expressed in a foreign currency， the sum payable shall be paid in Renminbi according to the market rate of exchange on the day of payment.
Where parties to a bill have stipulated the currency in which the bill is to be paid， the latter agreement shall be followed.
Article 60 Once the payer pays the bill in full， all debtors shall be discharged from liability.
Section 6 Right of Recourse
Article 61 When the payment of a bill has been refused at its date of maturity， the bearer may exercise the right of recourse against the endorsers， the issuer and other debtors of the bill.
Before the maturity of a bill， the bearer may also exercise the right of recourse under any of the following circumstances：
1. In cases when the payment of the bill has been refused；
2. In cases when the acceptor or the payer dies or flees；
3. In cases when the acceptor or the payer has been declared bankrupt according to the law or has been ordered to cease business activities due to their violations of the law.
Article 62 When exercising the right of recourse， the bearer shall be able to provide proof that acceptance or payment was refused.
In cases when the bearer's presentation of the bill for acceptance or payment has been refused， the acceptor or the payer must provide proof of their refusal or a statement noting their reasons for non-payment or non-acceptance. Otherwise， the acceptor or the payer shall bear the civil liabilities arising therefrom.
Article 63 In cases when the bearer is unable to obtain proof of refusal to accept or pay the bill because of the death or flight of the acceptor or payer or other causes， the bearer may procure other relevant proof according to the law.
Article 64 In cases when the acceptor or the payer has been declared legally bankrupt by the people's court， relevant judicial documents from the people's court shall be valid as proof of refusal to accept or pay the bill.
In cases when the acceptor or the payer has been ordered to cease business activities because of his violations of the law， the punitive decision of the relevant administrative authorities shall be valid as proof of refusal to accept or pay the bill.
Article 65 When the bearer cannot provide proof of refusal to accept or pay the bill or a statement noting reasons for non-payment or any other lawful proof within the prescribed period， he shall lose the right of recourse against his prior parties. However， the acceptor or the payer shall still remain liable to the bearer.
Article 66 The bearer shall give written notice of the refusal to accept or pay to his prior party within three days of receiving relevant certification denoting non-acceptance or non-payment； the prior party shall notify his prior party of the notice he has received within three days of receiving the notice. The bearer may also provide written notice to all debtors of the bill at the same time.
In cases when the bearer has failed to provide written notice in accordance with the time specifications noted in the preceding paragraph， the bearer may still exercise his right of recourse. Any party who fails to give notice within the prescribed period shall be liable to compensate his prior parties or the issuer for the losses caused by his delayed notice， but the sum of the damages shall not exceed the sum of the bill.
If the notice has been posted to the legal address or to an agreed address within the prescribed period， then the notice is deemed to have been issued.
Article 67 The written notice， made out according to the first paragraph of the preceding article， shall specify the main items written on the bill and shall clarify the fact that the said bill has been returned.
Article 68 The issuer， endorser， acceptor and guarantor of a bill are jointly liable to the bearer.
The bearer may exercise the right of recourse against any one or all of the persons mentioned in the preceding paragraph without being required to observe the order in which the debtors have become bound.
The bearer who has exercised the right of recourse against one or more of the debtors of the bill， may still exercise these rights against the other debtors. When a person who is being pressed for payment compensates the debt， they shall enjoy the same rights as the bearer.
Article 69 In cases when the bearer is the issuer， he shall have no right of recourse against the bearer's prior parties. In cases when the bearer is the endorser， he shall have no right of recourse against the endorser's subsequent parties.
Article 70 When exercising the right of recourse， the bearer may recover the following expenses from the person against whom he is exercising the right of recourse：
1. The amount of the unpaid bill；
2. Interest on this sum at the rate stipulated by the People's Bank of China from the date of maturity of the bill or the date upon which it was presented for payment to the date of payment；
3. The expenses for the relevant proof of non-payment or non-acceptance and the expenses incurred by issuing notices.
When the person against whom the right of recourse is exercised has settled the debt， the bearer shall hand over the bill and the relevant proof of non-payment or non-acceptance， as well as a receipt detailing the expenses and interest received.
Article 71 When the person against whom the right of recourse is exercised has settled the debt in accordance with the provisions of the preceding article， he may exercise the right of re-recourse against the other debtors and recover the following expenses；
1. The entire sum paid；
2. Interest on the said sum at the rate prescribed by the People's Bank of China from the day when the payment was made to the day of reimbursement；
3. The expenses incurred by issuing notices.
When the person exercising the right of re-recourse has been reimbursed， he shall hand over the bill and the relevant proof of non-payment or non-acceptance as well as a receipt detailing the expenses and interest received.
Article 72 When a person against whom the right of recourse is being exercised has settled the debt according to the stipulations of the two preceding articles， he shall be discharged from any liabilities.
Chapter III Promissory Notes
Article 73 A promissory note is an instrument issued and signed by the issuer promising to unconditionally pay the payee or bearer a set sum of money when the note is presented.
A promissory note as referred to in this Law denotes a banker's promissory note.
Article 74 The issuer of a note must possess reliable financial sources to pay the sum of money in the note and to guarantee payment.
Article 75 The credentials of the note's issuer shall be examined and approved by the People's Bank of China， who shall also stipulate specific administrative measures therefor.
Article 76 A note must specify the following items：
1. The word “promissory note”；
2. A promise of unconditional payment；
3. A set sum；
4. The name of the payee；
5. The date of issue；
6. The endorsement of the issuer. A note shall be null and void if any one of the above-mentioned items is not specified therein.
Article 77 The place of payment and place of issue， if specified on the note， shall be legible and unambiguous.
The place of payment， if not specified on the note， shall be the business premises of the issuer.
The place of issue， if not specified on the note， shall be the business premises of the issuer.
Article 78 The issuer of a note must bear liability for payment when the bearer presents the note.
Article 79 The time limit for the payment of a note shall not exceed two months from the date of issue.
Article 80 In cases when the bearer of a note fails to present the note for payment within the prescribed period， he shall lose the right of recourse against prior parties other than the issuer.
Article 81 In addition to the provisions of this chapter， the provisions of Chapter II of this Law pertaining to bills apply to the endorsement， guaranty and payment of notes and the exercise of the right of recourse.
In addition to the provisions of this chapter， the provisions of Article 24 of this Law pertaining to bills apply to the act of issuing notes.
Chapter IV Cheques
Article 82 A cheque is an instrument issued and signed by the issuer authorizing any bank or any other financial institution whose scope of business involves depositing cheques to unconditionally pay a certain sum of money to the payee or to the bearer at sight.
Article 83 When opening an account in which cheques can be deposited with a bank， the applicant must use his real name and must submit legitimate certification to prove his identity.
When opening an account in which cheques can be deposited with a bank and asking for a cheque book， the applicant must enjoy financial credibility and must deposit a certain amount of funds therein.
When opening an account in which cheques can be deposited with a bank， the applicant shall leave a specimensig nature of his real name and a specimenseal therein.
Article 84 Cheques may be payable in cash or payable into an account. If a cheque is payable only into an account， this shall be specified on the face of the cheque.
A form of cash cheque may be specially designed and made for cheques payable in cash and a cash cheque can only be used for payment in cash.
A form of crossed cheque may be specially designed and made for cheques payable into an account and a crossed cheque can not be used for payment in cash but only for settlement into an account.
Article 85 A cheque must specify the following items；
1. The word “cheque”；
2. Authorization of unconditional payment；
3. A certain sum；
4. The name of the payer；
5. The date of issue；
6. The signature of the issuer.
A cheque shall be null and void if any one of the above mentioned items is not specified therein.
Article 86 The sum on the cheque may be added to with the authorization of the issuer if the said sum is incomplete. Cheques which are incomplete cannot be used.
Article 87 The name of the payee， if not specified on the cheque， may be completed with the authorization of the issuer.
The place of payment， if not specified on the cheque， shall be the business premises of the payer.
The place of issue， if not specified on the cheque， shall be the business premises， residence or the habitual residence of the issuer.
The issuer may specify himself on the cheque as the payee.
Article 88 The sum specified on a cheque by the issuer shall not exceed the issuer's balance in the bank paying for the cheque at the time of payment.
Where the sum specified in a cheque exceeds the issuer's balance in the bank paying for the cheque at the time of payment， the cheque will bounce. It is prohibited to issue cheques that will bounce.
Article 89 The issuer shall not sign and issue cheques upon which his signature is not the same as his specimensig nature or specimen seal.
Article 90 The issuer must bear the liability of guaranteeing payment of the sum specified on the cheque to the bearer.
Where the issuer's balance in the bank paying for the cheque is sufficient to pay the sum of the cheque， the issuer shall pay the full sum on that day.
Article 91 A cheque is payable at sight and does not need to specify the date of payment. A specification of the date of payment shall be invalid.
Article 92 The bearer shall present the cheque for payment within ten days of the date of issue. The time limit within which cheques may be presented for payment in places other than the place of issue shall be stipulated by the People's Bank of China.
After the stipulated time limit has expired， the payer need not pay the cheque； in cases where the payer has not paid， the issuer shall still bear liability for the instrument to the bearer.
Article 93 The payer who has paid the sum of the cheque according to the law shall no longer bear liability to the issuer as the authorized payer， nor liability for payment to the bearer. However， the exception is in cases when the payment is made by the payer through malice or with gross negligence.
Article 94 In addition to the provisions of this chapter， the provisions of Chapter II of this Law pertaining to bills apply to the endorsement and payment of cheques and the exercise of the right of recourse.
In addition to the provisions of this chapter， the provisions of Articles 24 and 26 of this Law shall apply to the issuance of cheques.
Chapter V The Applicable Laws Pertaining Negotiable Instruments in Cases Involving Foreign Elements
Article 95 The applicable laws pertaining negotiable instruments in cases involving foreign elements shall be determined according to the provisions of this chapter.
Instruments in cases involving foreign elements as referred to in the preceding paragraph denotes instruments for whom one or more act of the issue， endorsement， acceptance， guaranty or payment takes place outside the People's Republic of China， while the rest take place within the territory of the People's Republic of China.
Article 96 If any international treaty concluded or acceded to by the People's Republic of China contains provisions differing from those of this Law， the provisions of the international treaty shall apply， unless the provisions are ones on which the People's Republic of China has announced reservations.
International practices may be applied to matters for which neither this Law nor any international treaty concluded or acceded to by the People's Republic of China has any provisions.
Article 97 As regards the capacity for civil conduct of a debtor of an instrument， the law of his own country shall be applicable.
In the event that a debtor of an instrument shall be regarded as a person with no capacity for civil conduct or with limited capacity for civil conduct according to the law of his own country， while he shall be regarded as a person with full capacity for civil conduct according to the law of the place where the action is being carried out， the latter law shall be applicable.
Article 98 Items required to be specified in the issue of bills or notes shall be bound by the law of the place of issue.
Items required to be specified in the issue of cheques shall be bound by the law of the place of issue. However， parties to a cheque may reach an agreement by which the law of the place of payment shall be applied.
Article 99 The endorsement， acceptance， payment and guaranty of an instrument shall be bound by the law of the place where the said action is being carried out.
Article 100 The time limits within which the rights of recourse can be exercised on an instrument shall be bound by the law of the place of issue of that instrument.
Article 101 The time limits within which the instrument should be presented， the way in which proof of refusal to accept or to pay is drawn up and the time limits for drawing up the proof of refusal to accept or to pay shall be bound by the law of the place of payment.
Article 102 In cases when an instrument is lost， the procedure by which the person who has lost the instrument applies to preserve their rights to the instrument shall be bound by the law of the place of payment.
Chapter VI Legal Responsibility
Article 103 Whosoever commits any of the following acts shall be investigated for criminal responsibility in accordance with the law：
1. The forgery or alteration of an instrument；
2. The intentional use of a forged or altered instrument；
3. The signing and issue of a cheque which will bounce or the intentional signing and issue of a cheque whereon the signature or seal is not the same as the specimen signature or seal in order to obtain property by fraudulence；
4. The signing and issue of a bill or note where no reliable financial sources exist in order to obtain funds by fraudulence；
5. The false specification of items on a bill or a note by the issuer at the time of issue in order to obtain property by fraudulence；
6. The fraudulent use of instruments belonging to other people or the intentional use of instruments which are overdue or have been cancelled in order to obtain property by fraudulence；
7. The malicious collusion of the payer and the issuer or the payer and the bearer to commit any of the preceding acts.
Article 104 Whoever commits any of the acts mentioned in the preceding article， when it is of minor importance and does not constitute a crime， shall be punished by the imposition of administrative penalties according to the relevant provisions of state law.
Article 105 Any staff member of a financial institution who neglects his duties and accepts， pays or guarantees an instrument which does not conform to the provisions of this Law， shall be punished； if this act causes substantial losses and constitutes a crime， he shall be investigated according to the law for criminal responsibility.
If damage has been inflicted on parties to an instrument due to staff members of financial institutions behaving in the manner described in the preceding paragraph， the said institution and the person directly responsible shall bear liability for compensation according to the law.
Article 106 If a payer intentionally delays paying an instrument which is payable on sight or an instrument which has reached maturity， the financial administration department shall fine the payer and punish any personnel directly responsible.
If the payer's intentional delay in payment causes losses to the bearer， then the payer shall bear liability for compensation according to the law.
Article 107 Those who commit other acts violating the provisions of this Law than those for which one shall bear liability for compensation according to the provisions of this Law， and so cause losses to other persons， shall bear civil liability according to the law.
Chapter VII Supplementary Provisions
Article 108 The calculation of all time limits stipulated by this Law shall be bound by the relevant provisions of the General Principles of Civil Law on the calculation of time limits.
When a time limit is prescribed in months， it expires on the corresponding day of the month in which the instrument reaches maturity； if there is no such day， the time limit expires on the last day of the month.
Article 109 The form taken by bills， notes and cheques shall be standardized.
Administrative measures for the form and printing of instruments and relevant documents shall be stipulated by the People's Bank of China.
Article 110 The specific measures taken for implementing the administration of instruments shall be formulated by the People's Bank of China in accordance with this Law， which shall go into effect after being submitted to and approved by the State Council.
Article 111 This Law shall come into force as of January 1， 1996.