Home

Payable to order vs payable to bearer Philippines

Indorsement of instrument payable to bearer. - Where an instrument, payable to bearer, is indorsed specially, it may nevertheless be further negotiated by delivery; but the person indorsing specially is liable as indorser to only such holders as make title through his indorsement. Sec. 41. Indorsement where payable to two or more persons Negotiation of instrument payable to order and to bearer. An instrument payable to order is negotiated by indorsement and delivery; an instrument payable to bearer, by mere delivery. NEGOTIABLE INSTRUMENTS LAW. Waives the benefit of any law intended for the advantage or protection of the obligor; o I promise to pay to bearer or order P20,000 on demand. Sgd. A; Statement 1. This is payable to bearer. Statement 2. This note is negotiable because although it is payable to order, the payee is not specified with reasonable certainty. Statement 1. This is a negotiable bill of exchange because it does not contain a promise to pay. Statement 2

(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 Payee, if the instrument is payable to order—the person in whose favor the promissory note is made payable 3. Bearer, if the instrument is payable to bearer PARTIES TO A BILL OF EXCHANG

2.) If payable to bearer: the party whose indorsement is forged and all parties prior, including the maker, are liable to a holder in due course but not to a holder who isn't in due course (a holder for value.) The instrument can be negotiated by mere delivery (because it's payable to bearer) so indorsement isn't necessary to transfer title. Thus, they are order instruments. They are not payable to their bearer, i.e., bearer instruments. Order instruments differ from bearer instruments in their manner of negotiation: Under Section 30 of the [Negotiable Instruments Law], an order instrument requires an indorsement from the payee or holder before it may be validly negotiated Not contain an unconditional promise or order to pay a sum certain in money . 6. Warehouse receipt - Not contain an unconditional promise or order to pay a sum certain in money. 7. Quedan - Not contain an unconditional promise or order to pay a sum certain in money. 8. Now account - Not payable to order or bearer . K. NEGOTIABLE VS

(Evangelista vs. Screenex, Inc., G.R. No. 211564, Nov. 20, 2017) — By definition, a check is a bill of exchange drawn on a bank 'payable on demand.' It is a negotiable instrument - written and signed by a drawer containing an unconditional order to pay on demand a sum certain in money SECTION 40. Indorsement of instrument payable to bearer. — Where an instrument, payable to bearer, is indorsed specially, it may nevertheless be further negotiated by delivery; but the person indorsing specially is liable as indorser to only such holders as make title through his indorsement [1] An instrument to be negotiable must conform to the following requirements: (a) It must be in writing and signed by the maker or drawer; (b) Must contain an unconditional promise or order to pay a sum certain in money; (c) Must be payable on demand, or at a fixed or determinable future time; (d) Must be payable to order or to bearer; and (e. Must be payable to order or to bearer. The instrument is payable to order where it is drawn payable to the order of a specified person or to him or his order. Where the instrument is payable to order the payee must be named or otherwise indicated therein with reasonable certainty. (See Sec. 8 What constitutes negotiation If payable to bearer, it is negotiated by delivery; if payable to order, it is negotiated by the endorsement of the holder completed by delivery. 44. Continuing negotiability General rule : An instrument which is negotiable in origin continues to be negotiable until it has been: restrictively indorsed; or paid at or.

4. payable to order • where it is drawn payable to the order of a specified person or to him or his order. May be drawn payable to order of — a. a payee not the maker/drawer/drawee, or b. drawer or maker, or c. drawee, or d. two or more payees jointly, or e. holder of an office for time bein Payee (if payable to order) or Bearer (if payable to bearer) - in whose favor it is made payable Acceptor - drawee who signifies his assent (usually by signature) to the order of the drawer drawee (NOTE: before assent; NOT a party Details. Category: Law on Negotiable Instruments. Sec. 9. When payable to bearer. - The instrument is payable to bearer: (a) When it is expressed to be so payable; or. (b) When it is payable to a person named therein or bearer; or. (c) When it is payable to the order of a fictitious or non-existing person, and such fact was known to the person. (1) A bill must be payable either to bearer or to order to be negotiable. (2) A bill is payable to bearer if it is expressed to be so payable, or if the only or last indorsement on it is an indorsement in blank, or if it is expressed to be payable to the order of 'cash' or to 'cash or order'. [Sub-s. (2) substituted by s. 3 of Act 56 of 2000.

When the instrument is payable to bearer, HDC refers to any person who becomes its possessor for value, before the amount becomes overdue. On the other hand, when the instrument is payable to order, HDC may mean any person who became endorsee or payee of the negotiable instrument, before it matures 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. 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. d. Payable to Order or to Bearer - words of negotiability; - Sec. 8 (payable to order); Sec. 9 (payable to bearer); Fictitious Payee Rule; Bearer - defined - Sec. 191, par. 4 - People vs. Wagas, 705 SCRA 17 [2013] - Salas vs. CA, et al., 181 SCRA 296 [1990] - Philippine National Bank vs. Rodriguez, et al., 566 SCRA 513 [2008] - Consolidated Plywood Industries, Inc. vs. IFC Leasing.

(d) Must be payable to order or to bearer; and (e) Where the instrument is addressed to a drawee, he must be named or otherwise indicated therein with reasonable certainty. The accepted rule is that the negotiability or non-negotiability of an instrument is determined from the writing, that is, from the face of the instrument itself Under section 1 of Act no. 2031 an instrument to be negotiable must conform to the following requirements: (a) It must be in writing and signed by the maker or drawer; (b) Must contain an unconditional promise or order to pay a sum certain in money; (c) Must be payable on demand, or at a fixed or determinable future time; (d) Must be payable to order or to bearer; and (e) Where the instrument. Must be payable on demand, or at a fixed or determinable future time; Must be payable to order or to bearer; and. Where the instrument is addressed to a drawee, he must be named or otherwise indicated therein with reasonable certainty. 32 Agbayani, Commentaries and Jurisprudence on the Commercial Laws of the Philippines, Vol. 1 (1992 ed.), p. 100 Where the instrument is payable to order the payee must be named or otherwise indicated therein with reasonable certainty. When instrument payable to order. The words to the order of/' or order/' or bearer/' and to bearer (see Sec. 9.) are standardized words of negotiabilit Caltex Philippines, Inc. vs. Court of Appeals G.R. No. 97753, August 10, 1992 FACTS: Defendant bank, Security Bank and Trust Company (SBTC) issued 280 certificates of time deposit (CTDs) in favour of Angel dela Cruz who then used the CTDs to guarantee his purchases of fuel products and delivered them to plaintiff Caltex. Sometime i

Form of negotiable instruments. Skip to main content PROJECT JURISPRUDENC Metropolitan Bank vs CA (194 SCRA 169, 18 February 1991) It must be payable on demand or at a fixed determinable future time Pay vs Palanca (57 SCRA 618) It must be payable to order or bearer Ang Tek Lian vs CA (87 Phil 383, 25 Sept 1950) The drawee must be named or indicated with reasonable certainty (Sec 1e, 130 NIL Under the Negotiable Instruments Law (sec. 9 [d], a check drawn payable to the order of cash is a check payable to bearer, and the bank may pay it to the person presenting it for payment without the drawer's indorsement. A check payable to the order of cash is a bearer instrument. Bacal v

The Negotiable Instruments Law of The Philippines - Chan

  1. If payable to bearer, it is negotiated by delivery; if payable to order, it is negotiated by the indorsement of the holder and completed by delivery. 32 Sandoval II v. House of Representatives Electoral Tribunal, G.R. No. 149380, July 3, 2002, 383 SCRA 770, 784
  2. able future time, within the meaning of this Act, which is expressed to be payable: (a) At a fixed period after date or sight; or (b) On or before a fixed or deter

Negotiable Instruments Law Negotiable IN - StuDoc

7. It can not be drawn 'payable to bearer'. 7. It can be drawn 'payable to bearer' 8. In case of dishonour of promissory Note, protest is not necessary. 8. In case of dishonour, a foreign Bill must be protested. 9. It can not be drawn in sets. 9. It can be drawn in sets. 10. Provisions of acceptance are not applicable. 10 Section 3-109: Checks may be payable to Bearer or to Order. The way a check is made payable will affect who must negotiate/indorse it. If it is made payable to bearer, that means the holder of the item can negotiate it (e.g., cash it or deposit it.) Examples of items payable to bearer include items on which the payee line is blank, items that. 1. Where it is payable to the order of a third person, and has paid by the drawer. 2. Where it was made or accepted for accommodation and has been paid by the party accommodated. (Sec. 121) Illustration: A is the drawer of a bill addressed to X, drawee, payable to the order of B By giving to a treasury or bank note or any instrument, payable to bearer or order mentioned therein, the appearance of a true genuine document. 2. By erasing, substituting, counterfeiting or altering by any means the figures, letters, words or signs contained therein

Sec. 9. When payable to bearer. - The instrument is payable to bearer: (a) When it is expressed to be so payable; or (b) When it is payable to a person named therein or bearer; or (c) When it is payable to the order of a fictitious or non-existing person, and such fact was known to the person making it so payable; o Rodriguez checks are payable to order since the bank failed to prove that the named payees therein are fictitious. Hence, the fictitious-payee rule which will make the instrument payable to bearer does not apply. PNB accepted the 69 checks for deposit to the PEMSLA account even without any indorsement from the named payees

WHEN IS AN INSTRUMENT PAYABLE TO BEARER? Sec. 9. When payable to bearer. - The instrument is payable to bearer: (a) When it is expressed to be so payable; or (b) When it is payable to a person named therein or bearer; or (c) When it is payable to the order of a fictitious or non-existing person, and such fact was known to the person making it. But this order was not made payable to order or to bearer, as required in subsection (d) of that Act; and inasmuch as it never left the possession of the bank, or its representative in New York City, there was no delivery in the sense intended in section 16 of the same Law As a rule, when the payee is fictitious or not intended to be the true recipient of the proceeds, the check is considered as a bearer instrument. A check is a bill of exchange drawn on a bank payable on demand. [11] It is either an order or a bearer instrument. Sections 8 and 9 of the NIL states: SEC. 8. When payable to order Must be payable to order or to bearer; and Where the instrument is addressed to a drawee, he must be named or otherwise indicated therein with reasonable certainty. The documents provide that the amounts deposited shall be repayable to the depositor Caltex (Philippines), Inc. vs Court of Appeals 212 SCRA 448. August 10, 1992 Facts: And according to the document, the depositor is the bearer. The documents do not say that the depositor is Angel de la Cruz and that the amounts deposited are repayable specifically to him. Must be payable to order or to bearer; and (e) Where the.

CPAR NEGO - law on negotiable instruments - StuDoc

§ 3-109. PAYABLE TO BEARER OR TO ORDER. Uniform ..

If payable to bearer, it is negotiated by delivery; if payable to order, it is negotiated by the indorsement of the holder and completed by delivery. Basically, negotiation and assignment are forms of transferring property rights to another person, there is a certain difference between them. They are given in the following table 1) By Giving to a treasury or bank note or any instrument payable to bearer or to order mentioned therein, the appearance of a true and genuine document; (2) By Erasing, substituting, counterfeiting, or altering by any means the figures, letters, words, or sign contained therein

Bearer instruments can be used in certain jurisdictions to avoid transfer taxes, although taxes may be charged when bearer instruments are issued. In the United States, under the Uniform Commercial Code , a negotiable instrument (such as a check or promissory note ) that is payable to the order of bearer or cash may be enforced (i.e. The bill Payable may be either on demand or after a specified period. The bill may be payable either to the bearer or to the order or payee. Illustrations: Please let the bearer have Rs. 15000 and oblige. We hereby authorize you to pay on our account to the order of X, Rs 65000. CHEQUE: A cheque is a bill of exchange drawn on a specified banker It may be drawn payable to the order of: • When it is expressed to be so payable; or • A payee who is not maker, drawer, or June 10, 2012 drawee; or Pay to bearer 10k upon demand June 10, 2012 sgd Y I promise to pay x or order 10k upon demand • When it is payable to a person named therein or bearer; or sgd Y June 10, 2012 • The drawer. Under the Negotiable Instruments Law 1, a negotiable promissory note is defined as an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay on demand, or at a fixed and determinable future time, a sum certain in money to order or to bearer

Bearer instruments are those negotiable instruments that are payable to the bearer and not to order. There are many ways to establish a bearer instrument, including failing to define the person or party to whom the instrument is payable and making the instrument out to cash - Upon any acceptance or payment of any bill of exchange or order for the payment of money purporting to be drawn in a foreign country but payable in the Philippines, there shall be collected a documentary stamp tax of Thirty centavos (P0.30) on each Two hundred pesos (P200), or fractional part thereof, of the face value of any such bill of. (2) A bill of exchange is an unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to order or to bearer. (3) A check is a bill of exchange drawn on a bank payable on demand. B Academia.edu is a platform for academics to share research papers Caltex (Philippines) Inc. vs. CA. A check drawn to the order of cash is payable to bearer, and the bank may pay it to the person presenting it for payment without the drawer's indorsement. Where a check is in the ordinary form and is payable to bearer so that no indorsement is required, a bank to which it is presented for.

Paper made out to bearer (bearer paper A negotiable instrument payable to whoever has possession. ) is negotiated by delivery alone; no indorsement is needed. A holder One who has legal possession of a negotiable instrument and who is entitled to payment. is anyone who possesses a document of title that is drawn to his order, indorsed to. (a) Except as provided in subsections (c) and (d), negotiable instrument means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if it: (1) is payable to bearer or to order at the time it is issued or first comes into possession of a holder; (2) is payable on demand or at a definite time; an The warrant was a check issued by the Government of the Philippines and, therefore, an obligation of the Government as defined by section 1 of Act No. 1754. It was originally made payable to Alvah D. Riley, or to his order. When it was indorsed as above indicated, it became a check or warrant payable to bearer

Video: Negotiable Instruments - General Principle

Unknown payee: Writing a check payable to cash is a simple solution if you don't know who to make a check payable to.   For example, you might know that you need to write a check for a certain amount, but you don't know the payee's exact (or legal) name. You can write a check to cash, slip it in your pocket, and leave your checkbook at. HSBC vs. CIR, G.R. No. 166018, June 04, 2014. Full text. Facts: HSBC performs custodial services on behalf of its investor-clients with respect to their passive investments in the Philippines, particularly investments in shares of stocks in domestic corporations. As a custodian bank, HSBC serves as the collection/payment agent Nowadays many businesses accept card payments but there are times when a negotiable instrument Negotiable Instrument A negotiable instrument refers to the transferrable and signed written document whereby the payer guarantees or promises to pay a certain sum on a specific future date or as on-demand to the payee or bearer. It includes bills of exchange, delivery order, promissory note.

Forgery in Negotiable Instruments ~ Philippine Laws

Section 181 of the Tax Code provides that any bill of exchange or order for the payment of money purporting to be drawn in a foreign country but payable in the Philippines shall be subject to. Fifth, there must not be any other concerns other than the payment of the money due to the payee. Sixth, the contract made must be payable upon demand or at a definite p of time indicated in the contract. Last is that the amount due ought to be paid to the bearer of the contract (Marsh & Soulsby, 2002) Caltex (Philippines) vs. CA (212 SCRA 448, 10 August 1992) Must be payable to order or to bearer; and Where the instrument is addressed to a drawee, he must be named or otherwise indicated therein with reasonable certainty. 0 Comments Philippine Education Co. vs Soriano (GR L-22405, 30 June 1971

G.R. No. 199455 - FEDERAL EXPRESS CORPORATION, PETITIONER ..

Recent Rulings on NEGOTIABLE INSTRUMENTS - PINAY JURIS

Thus, a foreign bill of exchange may be drawn outside the Philippines, payable outside the Philippines, or both drawn and payable outside of the Philippines. Sec. 129. Inland and foreign bills of exchange. — An inland bill of exchange is a bill which is, or on its face purports to be, both drawn and payable within the Philippines (Negotiable Instruments - payable to order or to bearer) Facts: Spouses Racho together with Spouses Lagasca executed a deed of mortgage in favor of GSIS in connection with 2 loans granted by the latter in the sums of p11,500.00 and p3,000.00, respectively.A parcel of land co-owned by the mortgagor spouses was govern as security under the aforesaid deeds and executed a promissory note. The instrument in order to be considered negotiable must contain the so called 'words of negotiability' — i.e., must be payable to 'order' or 'bearer'. These words serve as an expression of consent that the instrument may be transferred 2. All checks will be pre-numbered and used in numerical order. 3. No checks will be prepared without proper supporting documentation. 4. Checks will not be made payable to Cash or Bearer. 5. Blank checks are to be kept in a secured location in the Accounting Manager's office. 6. All checks must be accounted for

BatasniJuan: ACT NO

All checks will be pre-numbered and used in numerical order. 3. All Wires will be generated by Accounting Manager and approved by Director in all banking system. 4. No checks will be prepared without proper supporting documentation. 5. Checks will not be made payable to Cash or Bearer. 6 The promissory note, as well as the mortgage deeds subject of this case, are clearly not negotiable instruments. These documents do not comply with the fourth requisite to be considered as such under Section 1 of Act No. 2031 because they are neither payable to order nor to bearer. The note is payable to a specified party, the GSIS D E C I S I O NREYES, R.T., J.:WHEN the payee of the check is not intended to be the true recipient of its proceeds, is it payable to order or bearer? What is the fictitious-payee rule and who is liable under it? Is there any exception?These questions seek answers in this petition for review on certiorari of the Amended Decision[1] of the Court of Appeals (CA) which affirmed with modification. A promissory note is basically an IOU that contains a promise to repay the loan, and the terms for repayment. The note includes the: term (number of years). Unlike a mortgage or deed of trust, the promissory note isn't recorded in the county land records. The lender holds the promissory note while the loan is outstanding Facts: On 18 April 1958 Enrique Montinola sought to purchase from the Manila Post Office 10 money orders of P200.00 each payable to E. P. Montinola with address at Lucena, Quezon. After the postal teller had made out money orders numbered 124685, 124687-124695, Montinola offered to pay for them with a private check

3 purposes of the Negotiable Instruments La

The order or bearer character of a paper is determined as of the time when the negotiation is about to take place. True. 7 TRUE/FALSE Ch 29 7. If an instrument is payable to bearer, it may be negotiated by transfer of possession alone. True 8 TRUE/FALSE Ch 29. U.S. perspective The following is a general overview. Law pertaining to negotiable and non-negotiable instruments (which can vary somewhat from state to state) is too complex for detailed treatment in a Quora answer. The following is the heart of. 2. Order Cheque. When the word bearer appearing on the face of a cheque is cancelled and when in its place the word or order is written on the face of the cheque, the cheque is called an order cheque. Such a cheque is payable to the person specified therein as the payee, or to any one else to whom it is endorsed (transferred). 3

Negotiable Instruments - RCDInf

• A check is a bill of exchange drawn on a bank and payable on demand. [Section 185, Negotiable Instruments Law] Kinds of bill of exchange 1. Draft 2. Trade acceptance 3. Check Inland v. foreign bill of exchange • An inland bill of exchange is one which, on its face, purports to be both drawn and payable in the Philippines Checks are a sort of formalized IOU, a promise to pay money from a specific source to — usually — a specific person. They come in a number of different forms, each designed to fit specific needs or uses. Overall they're a safe and convenient alternative to cash, especially for travel or for situations such as sending money by mail, where cash would be a risky option ARTICLE 168 ILLEGAL POSSESSION AND USE OF FALSE TREASURY OR BANK NOTES AND OTHER INSTRUMENTS OF CREDIT Elements: 1. That the treasury or bank note or certificate or other obligation and securities payable to bearer or any instrument payable to order or other document of credit not payable to bearer is forged or falsified by another; 2 Post note definition is - a banknote payable to order at a specified future time as distinguished from one payable to bearer on demand; specifically : one issued as a circulating medium by banks and financial institutions before the American Civil War

Negotiable instruments law - SlideShar

Other related documents Exam 2019, questions and answers Experiment 5 - Linear Expansion Exam 19 April 2019, answers ECE107 Chapter 1 Lect1 - Introduction to Signals Financial Accounting 1 Valix MMW p10 Exercise b)if at all, the respondent may recover only from the seller-assignor of the promissory note. the assignment of the chattel mortgage by the seller-assignor in favor of th