A check that is payable to the order of a specific person is known as an "order paper." Order papers can be negotiated or transferred only by indorsement.A check payable "to bearer" or "to cash" is known as a "bearer paper"; it can be negotiated or transferred without indorsement.

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A "Bearer Paper" Is

Question 48

Multiple Choice

A "bearer paper" is:

A) a check made payable to the order of cash.
B) a check that can be transferred only by indorsement.
C) a check that can be negotiated only by indorsement.
D) a check that is payable to the order of a specific person.

Correct Answer: