41-03-10. (3-110) Identification of person to whom instrument is payable.
506 words·~2 min read·
/nd/title-41/chapter-41-03-negotiable-instruments/41-03-10·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
1. The person to whom an instrument is initially payable is determined by the intent of the
person, whether or not authorized, signing as or in the name or behalf of the issuer of
the instrument. The instrument is payable to the person intended by the signer even if
that person is identified in the instrument by a name or other identification that is not
that of the intended person. If more than one person signs in the name or behalf of the
issuer of an instrument and all the signers do not intend the same person as payee,
the instrument is payable to any person intended by one or more of the signers.
2. If the signature of the issuer of an instrument is made by automated means such as a
checkwriting machine, the payee of the instrument is determined by the intent of the
person who supplied the name or identification of the payee, whether or not authorized
to do so.
3. A person to whom an instrument is payable may be identified in any way, including by
name, identifying number, office, or account number. For the purpose of determining
the holder of an instrument, the following rules apply:
a. If an instrument is payable to an account and the account is identified only by
number, the instrument is payable to the person to whom the account is payable.
If an instrument is payable to an account identified by number and by the name of
a person, the instrument is payable to the named person, whether or not that
person is the owner of the account identified by number.
b. If an instrument is payable to:
(1)A trust, an estate, or a person described as trustee or representative of a
trust or estate, the instrument is payable to the trustee, the representative,
or a successor of either, whether or not the beneficiary or estate is also
named.
(2)A person described as agent or similar representative of a named or
identified person, the instrument is payable either to the represented person,
the representative, or a successor of the representative.
(3)A fund or organization that is not a legal entity, the instrument is payable to a
representative of the members of the fund or organization.
(4)An office or to a person described as holding an office, the instrument is
payable to the named person, the incumbent of the office, or a successor to
the incumbent.
4. If an instrument is payable to two or more persons alternatively, it is payable to any of
them and may be negotiated, discharged, or enforced by any or all of them in
possession of the instrument. If an instrument is payable to two or more persons not
alternatively, it is payable to all of them and may be negotiated, discharged, or
enforced only by all of them. If an instrument payable to two or more persons is
ambiguous as to whether it is payable to the persons alternatively, the instrument is
payable to the persons alternatively.