Rachel's father gave her a check drawn on his checking account marked "payable to the order of Rachel Stern." This instrument is order paper,because:

Question

Quizplus · Accepted Answer

If an instrument is payable to the order of a specific payee,it is called order paper,and it can be negotiated by transfer of possession of the instrument after indorsement by the person specified. In this example,the check is order paper,not because the word "order" appears on the check but rather because it named a specific payee,Rachel Stern.

Rachel's Father Gave Her a Check Drawn on His Checking