Forbiddance of Endorsement of the Bill of Exchange by Drawer

Abstract

The legal outcome of the no endorsement clause in which the endorser writes his endorsement on a bill of exchange is regulated in the second paragraph of the Turkish Commercial Code No: 6102 article 685 and in the second paragraph of the (former) Turkish Commercial Code No: 6762 article 597. These provisions relate to the endorsement of bill of exchange. However, they are also applied to promissory notes and cheques. Both of these provisions regulate that the endorser may forbid further endorsement of the bill of exchange and in this case, he is not liable to those persons to whom the bill of exchange is further endorsed.