Commercial Code section 3109

(a)

A promise or order is payable to bearer if it is any of the following:

(1)

States that it is payable to bearer or to the order of bearer or otherwise indicates that the person in possession of the promise or order is entitled to payment.

(2)

Does not state a payee.

(3)

States that it is payable to or to the order of cash or otherwise indicates that it is not payable to an identified person.

(b)

A promise or order that is not payable to bearer is payable to order if it is payable (1) to the order of an identified person or (2) to an identified person or order. A promise or order that is payable to order is payable to the identified person.

(c)

An instrument payable to bearer may become payable to an identified person if it is specially indorsed pursuant to subdivision (a) of Section 3205. An instrument payable to an identified person may become payable to bearer if it is indorsed in blank pursuant to subdivision (b) of Section 3205.

Source: Section 3109, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=COM§ionNum=3109.­ (updated Jan. 1, 1993; accessed Nov. 3, 2025).

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Verified:
Nov. 3, 2025

§ 3109's source at ca​.gov