When is a negotiable 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  so payable; or
      (d)  When  the  name  of  the  payee  does  not  purport  to  be  the name of any person; or
      (e)  When  the  only  or  last  indorsement  is  an  indorsement  in blank.  
 

PAYABLE TO THE ORDER OF A FICTITIOUS OR NON-EXISTENT PERSON

1.    The payee named must be fictitious or non-existent
2.    The  one  making  the  instrument  so  payable  must  know  him  to  be fictitious or non-existing
 

FICTITIOUS PERSON

      Not limited to persons having no real existence
      To be a person who has no right to the instrument because the drawer or  maker  of  it  so  intended,  and  therefore,  it  doesn’t  matter  whether the name of the payee used by the drawer or drawee be that of the living or the dead, or one who never existed
 

EXISTING  PAYEE  INTENDED  TO  RECEIVE  PROCEEDS;  NOT  PAYABLE  TO BEARER

      A  negotiable  paper  made  payable  to  the  name  of  an  existing  person known or believed by the maker or drawer to be existing, with intent that he should receive it or its proceeds, or that it be paid to him or upon  his  indorsement,  IS  NOT  PAYABLE  TO  A  FICTITIOUS  PAYEE  OR TO BEARER, although as a matter of fact such person has no interest in the paper and it was procured by fraud of a third person or of the maker’s or drawer’s employee or agent whose knowledge or intent is not imputable to the principal or employer, and cashed by the person having possession upon the forged instrument of the payee
 

NON-EXISTING  PAYEE,  OR  ONE  WITHOUT  INTEREST,  BUT  BELIEVED EXISTING  OR  WITH  INTEREST,  AND  INTENDED  TO  RECEIVE  PROCEEDS; NOT PAYABLE TO BEARER

NON-EXISTING   PAYEE,   OR   ONE   WITHOUT   INTEREST,   KNOWN   OR  BELIEVED   NON-EXISTING   NOT   INTENDED   TO   RECEIVE   PROCEEDS; PAYABLE TO BEARER

PERSON  TO  WHOM  THE  FICTITIOUS  OR  NON-EXISTING  CHARACTER  OF PAYEE MUST BE KNOWN

      The drawer drawing a bill or the maker making a note is the person to whom  the  fictitious  or  non-existing  character  of  the  payee  must  be known
      Where the instrument is drawn or made by an agent or prepared by an employee with the maker or drawer signing only, the question arises as to whose intent should control

WHERE AGENT HAS NO AUTHORITY TO EXECUTE INSTRUMENT

      The  knowledge  of  the  principal  or  employer  is  controlling,  and  if  he doesn’t have any knowledge of the fictitious or non-existing character of  the  payee,  the  knowledge  of  the  employee  or  the  agent  will  not avail to call into application as to fictitious payees and the instrument will not be considered as payable to bearer
 

NAME OF PAYEE NOT NAME OF PERSON

      Pay to cash
      Pay to the order of money
      Pay to the order of cash
 

WHERE PAYABLE TO THE ESTATE OF A DEAD PERSON

      It has been held to be payable to bearer
      The state  is  a  juridical  person  in  a  limited  way  and  thus  it shouldn’t be payable to bearer