An order paper can also be defined as a list of all the items that may be brought forward on that day in the Parliament of Canada, the British House of Commons, or the United States Senate. Bearer instruments, on the other hand, do not name a specific payee; anyone who bears the instrument can collect payment on it.
An order instrument must identify a named payee on the payee line. A bearer instrument, on the other hand, does not include the name of the payee on the instrument, and will typically not have a payee line. A common example of an order instrument is a personal check. Other order instruments could include registered bonds, bills of exchange a kind of check without interest and promissory notes a written promise to pay.
To be considered an order instrument, a negotiable instrument must have certain characteristics. When an order instrument is endorsed, it becomes a bearer instrument. For example, when you receive a payment by check and endorse that check, your check, which was an order instrument prior to endorsement, becomes a bearer instrument.
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An order paper, or order instrument, is a negotiable instrument that is payable to a specified person or its assignee. An instrument such as an order paper is negotiable only if it is payable to.
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