The previous holder refers to the person who has held the instrument and signed the instrument before the current holder.

1. The concept of predecessor: For a specific signer on the bill, any debtor who signed the bill before signing is his predecessor; for the holder of the bill From a human perspective, all debtors who sign the instrument are their predecessors. The person who signed the note is the person who signed the note. He is the debtor of the note and has the obligation to ensure that the holder will receive payment. The concept of backhand: Backhand refers to other bill debtors who sign after one or several bearers. In terms of the bill relationship, as one of the debtors of the bill, the second party also has the obligation to ensure that the holder can receive payment as far as the final holder is concerned.

2. The bill is negotiable. After multiple endorsements, the instrument will be transferred multiple times and have multiple signatures and seals. A predecessor is the person or persons who endorsed and signed the instrument relative to the person who currently holds the instrument. Forehand and backhand are relative. The person signing the bill can be either forehand or backhand. He is a predecessor in relation to the debtor or holder of the note who signed behind him; he is a latecomer in relation to the debtor of the note who signed in front of him.

3. Distinguishing between the front hand and the back hand is of great significance in the Negotiable Instruments Law. For example, the Bill of Exchange Law stipulates that for a bill transferred by endorsement, the successor shall be responsible for the authenticity of the endorsement directly made by the predecessor; if the holder is the drawer, he has no right to recover from the prior party; the endorser transfers the bill by endorsement. After that, it assumes the responsibility to guarantee the acceptance and payment of the bills of exchange held by its successors.

A bill of exchange refers to a certain amount of securities issued by the drawee in accordance with the law and paid unconditionally to the payee or holder by himself or by entrusting others, that is, a certain kind of securities that can replace cash flow. Bills in a broad sense refer to various securities and certificates, such as bonds, stocks, treasury bills, invoices, etc. In a narrow sense, a bill of exchange refers only to securities for the purpose of payment, that is, securities issued by the drawer in accordance with the Bill of Exchange Act and for which the drawer unconditionally pays a certain amount of money or entrusts another person to pay a certain amount of money unconditionally. The amount is given to the payee or holder. In China, bill of exchange is the general term for bills of exchange (bank drafts and commercial bills), checks and cashier's checks (cashier's checks). A bill of exchange generally refers to a negotiable security issued commercially by the drawee, who unconditionally agrees to pay a certain amount himself or unconditionally entrusts another person to pay a certain amount, and the holder has certain rights. There are money orders, cashier's checks, checks, bills of lading, stocks, bonds, etc.