Which of the following is bearer paper?
A)A check payable to the order of X and specially indorsed to Y.
B)A check payable to the order of X.
C)A check payable to the order of cash and specially indorsed by the person who received it.
D)A check payable to the order of cash and delivered to Y.

Question

Which of the following is bearer paper?
A)A check payable to the order of X and specially indorsed to Y.
B)A check payable to the order of X.
C)A check payable to the order of cash and specially indorsed by the person who received it.
D)A check payable to the order of cash and delivered to Y.

Quizplus · Accepted Answer

If an instrument is payable "to bearer" or "to cash," it is called bearer paper.It can be negotiated by giving it to the person to whom you wish to transfer it.No indorsement is necessary to negotiate an instrument payable to bearer.

Which of the Following Is Bearer Paper