§ 4-3-109 — Payable to bearer or to order

(a) A promise or order is payable to
bearer if it:

(1) States that it is payable to bearer or to the order of bearer or otherwise
indicates that the person in possession of the promise or order is entitled to
payment;

(2) Does not state a payee; or

(3) States that it is payable to or to the order of cash or otherwise indicates
that it is not payable to an identified person.

(b) A promise or order that is not payable to bearer is payable to order if it is
payable (i) to the order of an identified person or (ii) to an identified person or order.
A promise or order that is payable to order is payable to the identified person.

(c) An instrument payable to bearer may become payable to an identified
person if it is specially indorsed pursuant to section 4-3-205 (a). An instrument
payable to an identified person may become payable to bearer if it is indorsed in
blank pursuant to section 4-3-205 (b).

Legislative History

Source: L. 94: Entire article R&RE, p. 845, � 1, effective January 1, 1995.