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
