Payable to Bearer or to Order

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Negotiable Instruments
  5. General Provisions and Definitions
  6. Payable to Bearer or to Order

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  1. 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.
  2. A promise or order that is not payable to bearer is payable to order if it is payable to (i) the order of an identified person; or (ii) an identified person or order. A promise or order that is payable to order is payable to the identified person.
  3. An instrument payable to bearer may become payable to an identified person if it is specially indorsed pursuant to subsection (a) of Code Section 11-3-205. An instrument payable to an identified person may become payable to bearer if it is indorsed in blank pursuant to subsection (b) of Code Section 11-3-205.

(Code 1981, §11-3-109, enacted by Ga. L. 1996, p. 1306, § 3.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 11 Am. Jur. 2d, Bills and Notes, §§ 75 et seq., 122, 203, 212.

C.J.S.

- 10 C.J.S., Bills and Notes, §§ 13, 128.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 3-109.

ALR.

- Necessity of express agreement between endorsers to be jointly and not successively liable, in order to give a right of contribution as between themselves, 11 A.L.R. 1332; 90 A.L.R. 305.

Waiver of demand and notice as affecting endorsers other than the one above whose name it immediately appears, 21 A.L.R. 1396; 110 A.L.R. 1228.

Presumption from possession of ownership of unendorsed note payable to order on issue between rival claimants, 30 A.L.R. 1492.

Validity and effect of note payable to maker without words of negotiability, 42 A.L.R. 1067; 50 A.L.R. 426.

Instrument payable to "estate" as within rule that an instrument payable to order of fictitious or nonexistent person is payable to bearer, 60 A.L.R. 610.

Payment to, or endorsement by, indicated beneficiary of check purporting to be payable or endorsed to one person "for another,", 61 A.L.R. 272.

When negotiable instruments deemed payable to fictitious or nonexistent persons within statute or rule that makes such paper payable to bearer, 118 A.L.R. 15.

Validity and effect of note payable by its terms to maker or order and not endorsed by maker, 126 A.L.R. 1309.

Liability of bank for diversion to benefit of presenter or third party of proceeds of check drawn to bank's order by drawer not indebted to bank, 69 A.L.R.4th 778.

When is instrument "payable to bearer or to order" as required to constitute negotiable instrument under Article 3 of the Uniform Commercial Code §§ 3-104(a)(1) and 3-109, 77 A.L.R.5th 523.


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