Abstract: Since the rise of electronic bills in China, the traditional view holds that electronic bills are detached from existing legislation in China and lack basic legal regulations. However, by defining the three basic elements of electronic bills: written form, original document, and signature, it can be demonstrated that electronic bills are applicable within the legal framework of China. Referring to foreign legislation, especially the United Nations International Trade Commission's Model Law on Electronic Commerce, it can be inferred that electronic bills possess the basic requirements of bills, belong to special bills, and are applicable to general legal provisions for bills.

Keywords: electronic bills; Written form; Original; Signature and seal; Legal application

introduction

The "real bill theory" of the mid-19th century, as well as the derived "bill self compensation theory," have always been the theoretical basis for bill transactions and an important basis for demonstrating the safety of bills. Currently, with the continuous deepening and improvement of the capital market, the development of the bill market is slightly lagging behind. The reason is that in the context of digital trading, bills still remain in traditional paper form. The traditional bill inquiry efficiency is low, the risk control cost of bill circulation and custody process is high, and the off exchange manual trading procedures are cumbersome. Although electronic bills that can correct these shortcomings have long emerged, the current laws in China do not provide a clear legal positioning for electronic bills, resulting in the awkward operation of electronic bills under the current legal framework in China and not receiving the necessary norms and protection.

1. The Meaning and Development Status of Electronic Bills in China

（1） The meaning of electronic bills

Electronic bills refer to the function of paper bills and transfer funds through the transmission of information through data messages on the network. There are currently two approaches to interpreting electronic bills: electronic bills and electronic bills. The former refers to the process of transferring various elements of traditional paper bills into electronic information through the use of network and computer technology, and exercising the bill behavior in the form of data messages to achieve the transfer of fund accounts through fund storage and transmission. The latter refers to the electronic form of electronic information that completely separates from traditional paper bills and exists in the network and computer, and all bill behaviors and business processes are carried by bill behaviors through network transmission. It can be referred to as the information level and currency level of electronic bills. Iii

The author believes that electronic bills are essentially an extension of paper bills in the form of computer and network technology, and are still a type of bill, possessing all the connotations and extensions of paper bills.

（2） The Development Status of Electronic Bills in China

In 2005, China Merchants Bank developed "Bill Connect" - online bill business. Subsequently, Industrial and Commercial Bank of China developed the "Yifubao" electronic bill. At the end of 2006, Minsheng Bank launched an electronic bill business.

However, these electronic bills are currently limited to the online systems of various commercial banks, and the national electronic bill circulation market has not yet formed. Although on June 30, 2003, the "China Bill Network" was officially launched, providing quotation and query services for inter financial institution bill discounting, bill repurchase, and other businesses, marking the beginning of the digitization of China's bill market. But it was also a busy time, and the website is currently only a quotation system that cannot provide transaction functions.

The establishment and promotion of the post check image exchange system nationwide is the beginning for China to learn from the experience of other countries and regions in the development of electronic bills and achieve the digitization of check business. However, other electronic bill businesses such as bills of exchange and promissory notes can still only be limited to circulation within the systems of various financial institutions.

2. The Application of Electronic Instruments under the Current Legal Framework in China

The Negotiable Instruments Law does not provide a clear definition of the concept of negotiable instruments. The theoretical community generally defines it as a type of securities issued by the drawer in accordance with the Negotiable Instruments Law, which unconditionally pays a certain amount to the payee or holder at sight or on the date of the bill. Currently, there are many controversies over electronic bills, with most believing that electronic bills are outside the current legal framework in China. The author holds the opposite view. It is believed that electronic bills are applicable to the current laws of China and are subject to legal norms and protection.

It is generally believed that bills are a formal security with very strict requirements for form. Unless otherwise stipulated in the Negotiable Instruments Law, instruments that do not have a legal format shall not have the validity of the instrument. The conflict between electronic bills and the provisions of the current bill law on the form of bills is manifested in three aspects: written form, original copy, and signature. The author hereby demonstrates the legal application of electronic bills in these three aspects.

（1） Written form requirements for bills

①Traditional viewpoints

The current bill law believes that a bill is a written security, and every bill behavior must be made in written form, and oral means do not have any legal effect on bills. The person responsible for the bill of vi shall make records on the front, back, or sticky note of the bill in accordance with regulations, and different records have different legal effects. The People's Bank of China has unified regulations on the paper and format of promissory notes, bills of exchange, and checks. Therefore, there is a viewpoint that the Negotiable Instruments Law does not recognize the payment and settlement methods of non paper electronic instruments. Electronic bills have separated from traditional paper carriers, and their effectiveness has not been clearly stipulated in the law and has not been included in the Bill Law.

②Legal Application of Electronic Instruments in Written Form

Ⅰ.International legislation applies mutatis mutandis. Article 6 of the United Nations Model Law on Electronic Commerce stipulates: "If the information contained in a data message can be retrieved and used in the future, it is in written form that meets the legal requirements." That is to say, electronic transmission in electronic commerce has the same legal effect as a written document. Article 5 stipulates: "The legal validity, validity, or enforceability of a certain information shall not be denied solely on the grounds that it is in the form of a data message." Article 10 stipulates: If the law requires certain documents, records, or information to be retained, this requirement can be met by retaining data messages, but the following conditions must be met: a) the reliability of the method of storing or transmitting the data message, which can be accessed for future reference; b) the integrity condition: the reliability of the method of maintaining information integrity, which can reach the state when it was first formed; c) a secure signature or similar method of identifying the originator   Established the evidentiary validity of electronic data in litigation proceedings. Vii

Ⅱ.Our country's legislation is applicable. Article 11 of China's Contract Law stipulates that "written form refers to the form of contract, letter and data message (including telegram, telex, fax, Electronic data interchange and e-mail) that can tangibly express the contents contained." It establishes that contracts are not limited to paper documents, but can also be expressed in Electronic data interchange and e-mail. The notice on changing the processing method of electronic interbank business issued by the People's Bank of China in 1994 stipulates that "electronic payment information and paper voucher payment information have the same legal effect. When paper vouchers are converted into electronic information, electronic information becomes effective and paper vouchers become invalid; when electronic information is converted into paper vouchers, paper vouchers become effective and electronic information becomes invalid

Effective Established the equal applicability of electronic payment information and paper information. Viii

In summary, the electronic data recorded in electronic bills in the form of electromagnetic media, although different from traditional paper forms, is still an extension of the application of paper bills in information network technology, fully applicable to China's "Bill Law", and should receive the norms and protection of the current legal framework.

（2） Requirements for original bills

There is a viewpoint that electronic bills cannot be transmitted in the original form, and the recipient can only receive electronic bills that are reproduced in data form. In terms of the original, the circulation of electronic bills loses its legal significance. The author believes that the function of the original document is to authenticate the information on the bill, in order to maintain its authenticity and credibility, and promote the circulation safety of the bill. Data messages with certain requirements have the same validity as original documents. Ix

Article 5 of China's Electronic Signature Law stipulates that "data messages that meet certain conditions shall be deemed to meet the original form requirements stipulated by laws and regulations." Article 8 of the United Nations Model Law on Electronic Commerce stipulates: If the law requires information to be presented or retained in its original form, for example, a data message meets the requirement as long as it has the following conditions: a. There is a reliable way to ensure that the information is first generated in its final form, and from the time it is used as a data message or for other purposes, the information remains intact. b. The information can be presented to people when needed. "x This confirms the use of technical means to verify the content of the data message, Equivalent to the nature of its original, it solves the requirements of the bill law for original bills.

（3） Requirements for bill signature

① Traditional viewpoints

The strict formality of bills determines that if there is no signature, there is no responsibility. Article 4 of China's Negotiable Instruments Law stipulates: "When the issuer of a negotiable instrument makes a negotiable instrument, they shall sign and affix their seal on the instrument in accordance with legal conditions and bear the liability for the instrument in accordance with the matters recorded. The holder of the right to a negotiable instrument shall sign and affix their seal on the instrument in accordance with legal procedures and present the instrument. If other debtors of the instrument sign and affix their seal on the instrument, they shall bear the liability for the instrument in accordance with the matters recorded on the instrument." Article 7 stipulates: The signature on a bill is a signature, seal, or signature plus seal. The signature of a legal person or other applicable unit on a bill is the seal of the legal person or unit plus the signature of its legal representative or authorized agent. The signature on a bill should be the real name of the party involved. Therefore, it is believed that the current bill law in China does not explicitly stipulate whether other forms of signature can have legal effect. Xi

② Legal application of electronic signatures in bills

The signatures and seals required by the Negotiable Instruments Law are not limited to handwritten paper signatures or seals. Electronic signatures that meet certain technical conditions should be recognized and protected by law. Electronic signatures cannot be legally recognized because they exist in a virtual environment.

Ⅰ. International legislation applies mutatis mutandis. In 1995, the state of Utah in the United States enacted the Utah Electronic Signature Act, becoming the first region in the world to legislate for electronic signatures, recognizing for the first time that electronic signatures have the same legal effect as handwritten signatures in commercial activities. The United Nations' Model Law on Electronic Commerce establishes the method of "functional equivalence" for the legal effect of electronic signatures. The specific approach is to select the basic role in the written form requirement and use it as a standard. Once the data message meets these standards, it can enjoy the same level of legal recognition as the corresponding written document that plays the same role. Xiii This is the most important legal method to eliminate unfair treatment caused by virtual environments in law.

Ⅱ. Our country's legislation is applicable. The Electronic Signature Law, which came into effect on April 1, 2005, has given electronic signatures the same legal effect as traditional handwritten signatures. Article 13 of the Law stipulates: "An electronic signature shall be deemed reliable if it meets the following conditions: (1) when the electronic signature creation data is used for electronic signature, it belongs to the exclusive use of the electronic signatory; (2) when the electronic signature creation data is signed, it is only controlled by the electronic signatory; (3) any changes to the electronic signature after signing can be discovered; (4) Any changes to the content and form of the data message after signing can be discovered. The parties may also choose to use electronic signatures that meet their agreed upon reliable conditions Article 14: "Reliable electronic signatures have the same legal effect as handwritten signatures or seals." On October 26, 2005, the People's Bank of China issued the "Electronic Payment Guidelines" and also recognized the effectiveness of electronic signatures. Xiv

A document with an electronic signature means that the signatory agrees to be legally bound by the content of the document, as long as the function of the electronic signature can meet: a. The signatory cannot deny the fact of their signature afterwards; b. No one can forge the signature; c. If there is a dispute between the parties regarding the authenticity of the signature, it can be determined by an impartial third party by verifying the signature to confirm its authenticity. Such electronic signatures should be regarded as having the same legal effect as handwritten signatures or seals. At present, the transaction information of electronic bills in China is encrypted by electronic signature, transmitted and identified after being certified by CA certification authority, and completed by "asymmetric key encryption method". Technical requirements that comply with legal provisions should be applied mutatis mutandis within the current legal framework of China.

3. Conclusion

The current laws in China do not deny the written form, original copy, and signature validity of electronic bills. Electronic bills are an extension of traditional paper bills, and their behavior is also a strict formal behavior. They have the extension and connotation of traditional paper bills, and electronic bills are applicable to the current legal framework in China. Electronic bills exist in electronic media and circulate on the internet, providing information that is visible, real, and legal; The issuance and circulation process of each electronic bill is unique and exclusive, and any act of forging, fabricating, cloning, or copying is illegal and must be strictly pursued by law.

Of course, with the development of the electronic bill market, it is necessary for Chinese law to clearly define the legal status of electronic bills, strictly regulate their technical operations, and provide unified application rules for electronic bills and paper bills.

Comment:

[1] Adam Smith, in his "Study on the Nature and Causes of National Wealth," used the "theory of authenticity of bills" as a guide for bank loans.

[2] Yang Luming et al. edited "E-commerce Law", published by China Machinery Industry Press, April 2007, first edition, pages 54-55.

[3] Yi Lin and Liu Chang, "Clarifying the Concept of Electronic Bills," published in "Contemporary Managers," June 2006.

[4] Wang Xiaoneng, "A Course in Negotiable Instruments Law", Peking University Press, July 2001, 2nd edition, page 14.

[5] Bill Law, written by Liu Xinwen, China University of Political Science and Law Press, August 2007, the fourth edition, page 17.

[6] Wang Xiaoneng, "A Course in Negotiable Instruments Law", Peking University Press, July 2001, 2nd edition, page 35.

[7] UNITRAL Model Law on Electronic Commerce (1996), see

Http://www.jus. uio. no/lm/pdf/un. electronics. commerce. model. law. 1996.pdf.

[8] Http://www.c hinaorg. cn/zcfg/zcfg/2007-12/20/content_ 5154178.htm.

[9] Wang Shu's "Research on the Legal System of Electronic Instruments", published in Journal of Anshan University of Science and Technology, Volume 29, Issue 1, February 2006.

[10] UNITRAL Model Law on Electronic Commerce (1996), see

Http://www.jus. uio. no/lm/pdf/un. electronics. commerce. model. law. 1996.pdf.

[11] Zhu Jialei's "Analysis of Problems and Countermeasures for the Development of Bank Electronic Bill Business", published in Financial Accounting, Issue 5, 2009.

[12] Entrust Securing Digital Identity and Information "Digital Signatures -