(a) The person to whom an instrument is initially payable is determined by the intent of the person, whether or not authorized, signing as, or in the name or behalf of, the issuer of the instrument. The instrument is payable to the person intended by the signer even if that person is identified in the instrument by a name or other identification that is not that of the intended person. If more than one person signs in the name or behalf of the issuer of an instrument and all the signers do not intend the same person as payee, the instrument is payable to any person intended by one or more of the signers.
If the signature of the issuer of an instrument is made by automated means, such as acheck-writing machine, the payee of the instrument is determined by the intent of the person who supplied the name or identification of the payee, whether or not authorized to do so.
A person to whom an instrument is payable may be identified in any way, includingby name, identifying number, office, or account number. For the purpose of determining the holder of an instrument, the following rules apply:
If an instrument is payable to an account and the account is identified only by number, the instrument is payable to the person to whom the account is payable. If an instrument is payable to an account identified by number and by the name of a person, the instrument is payable to the named person, whether or not that person is the owner of the account identified by number.
If an instrument is payable to:
A trust, an estate, or a person described as trustee or representative of a trust or estate,the instrument is payable to the trustee, the representative, or a successor of either, whether or not the beneficiary or estate is also named;
A person described as agent or similar representative of a named or identified person, the instrument is payable to the represented person, the representative, or a successor of the representative;
A fund or organization that is not a legal entity, the instrument is payable to a representative of the members of the fund or organization; or
An office or to a person described as holding an office, the instrument is payable tothe named person, the incumbent of the office, or a successor to the incumbent.
If an instrument is payable to two or more persons alternatively, it is payable to anyof them and may be negotiated, discharged, or enforced by any or all of them in possession of the instrument. If an instrument is payable to two or more persons not alternatively, it is payable to all of them and may be negotiated, discharged, or enforced only by all of them. If an instrument payable to two or more persons is ambiguous as to whether it is payable to the persons alternatively, the instrument is payable to the persons alternatively.
Source: L. 94: Entire article R&RE, p. 845, § 1, effective January 1, 1995.
Editor's note: This section is similar to former §§ 4-3-116 and 4-3-117 as they existed prior to 1994.
Place of payment. Except as otherwise provided for items in article 4 of this title, an instrument is payable at the place of payment stated in the instrument. If no place of payment is stated, an instrument is payable at the address of the drawee or maker stated in the instrument. If no address is stated, the place of payment is the place of business of the drawee or maker. If a drawee or maker has more than one place of business, the place of payment is any place of business of the drawee or maker chosen by the person entitled to enforce the instrument. If the drawee or maker has no place of business, the place of payment is the residence of the drawee or maker.
Source: L. 94: Entire article R&RE, p. 847, § 1, effective January 1, 1995.
Interest. (a) Unless otherwise provided in the instrument, (i) an instrument is not payable with interest, and (ii) interest on an interest-bearing instrument is payable from the date of the instrument.
(b) Interest may be stated in an instrument as a fixed or variable amount of money or it may be expressed as a fixed or variable rate or rates. The amount or rate of interest may be stated or described in the instrument in any manner and may require reference to information not contained in the instrument. If an instrument provides for interest, but the amount of interest payable cannot be ascertained from the description, interest is payable at the judgment rate in effect at the place of payment of the instrument and at the time interest first accrues.
Source: L. 94: Entire article R&RE, p. 847, § 1, effective January 1, 1995.