Bearer checks are unconditional orders that must be paid out to which party?

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Multiple Choice

Bearer checks are unconditional orders that must be paid out to which party?

Explanation:
Bearer checks rely on the idea that the instrument is payable to the person who holds it. In other words, it’s a bearer instrument, so whoever presents the check has the right to receive payment. That means the recipient is the holder of the instrument, not a named person or the issuer. The bank pays the holder because the check is unconditional and transferable by possession.

Bearer checks rely on the idea that the instrument is payable to the person who holds it. In other words, it’s a bearer instrument, so whoever presents the check has the right to receive payment. That means the recipient is the holder of the instrument, not a named person or the issuer. The bank pays the holder because the check is unconditional and transferable by possession.

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