Payable to Bearer Law and Legal Definition
Payable to bearer means payable to the holder or presenter. A person holding instruments such as checks, promissory notes, bank drafts, or bonds is a bearer. When an instrument is payable to bearer, it means whoever holds the instrument can receive the funds due on it.
Pursuant to U.C.C. § 3-109, A promise or order is payable to bearer when the instrument:
states that the instrument is payable to bearer or to the order of bearer or the person in possession of the promise or order is entitled to payment ;
does not state a payee; or
states that the instrument is payable to or to the order of cash or otherwise indicates that it is not payable to an identified person.
