Section 8

When payable to order. —The instrument is payable to order where it is drawn payable to the order of a specified person or to him or
his order. (dapat nakapangalan gid)
It may be drawn payable to the order of—
a) A payee who is not maker, drawer, or drawee; or
b) The drawer or maker; or
c) The drawee; or
d) Two or more payees jointly; or
e) One or more several payees; or
f) The holder of an office for the time being.
g) Where the instrument is payable to order, the payee must be named or otherwise indicated therein with reasonable certainty.
When instrument payable to order.
 The words "to the order of/' "or order/' "or bearer/' and "to bearer" are standardized words of negotiability of an instrument. These
words serve as an expression of consent that the instrument may be transferred, to whoever the payee orders, allowing further
negotiation of the instrument. This consent is indispensable since a maker or drawer assumes greater risks under a negotiable
instrument than under a non-negotiable one.

Section 8 enumerates the persons to whose order an instrument may be made payable by the maker or drawer.
EXAMPLES:
1. to order of payee who is not the maker. "I promise to pay PI,000.00 to the order of P (or to pay P or order PI,000.00). (Sgd.) M"
2. to order of payee who is not the drawer. "Pay to the order of P P1,000.00. (Sgd.) R6 "
3. to order of payee who is not the drawee. "Pay to the order of P PI,000.00 (Sgd.) R To W Manila“
4. to order of drawer. "Pay to the order of myself PI,000.00. (Sgd.) R To W Manila" When a depositor wishes to get cash from his
bank over the counter, the practice is to draw a check in the form of "Pay to cash.“
5. to order of maker. "I promise to pay to the order of myself PI,000.00. (Sgd.)M" But a note payable to the order of the maker is not
complete until indorsed by him.
6. to order of drawee. "Pay to the order of yourself P1,000.00. (Sgd.) R To W Manila" Being both the drawee and payee, W can pay
himself on maturity from funds belonging to the drawer in his possession.
7. to order of two or more payees jointly. "Pay to the order of P and A PI,000.00.“
8. to order of one or some of several payees. "Pay to the order of P, A, or B PI,000.00" or "Pay to the order of P, A and B, or any of
them or any two of them." In this case, the instrument is payable to either one of them, and the indorsement of any one is sufficient to
pass title.
9. to order of holder of an office for the time being. "Pay to the order of the Commissioner of Internal Revenue" or "Pay to the order
of the Treasurer, Philippine National Bank."
Effect where payee not named or described.
It should be noted that in an order instrument, a specified person must always be named therein either before or after the word "order." If
there is no payee, there is nobody who could give the order or authority to collect In other words, there would be nobody who could indorse the
instrument (see Sees. 30,9[c].) and, therefore, there is no point considering it negotiable.

But it is sufficient if the payee, though not named, is described with reasonable certainty (par. 2.), e.g., to the order of "the administrator of the
estate of P," "A" or his assigns, etc.

Section 9
When payable to bearer. —
The instrument is payable to bearer —
a. When it is expressed to be so payable; or
b. When it is payable to a person named therein or bearer; or
c. When it is payable to the order of a fictitious or non-existing person, and such fact was known to the person making it so
payable; or
d. When the name of the payee does not purport to be the name of any person; or
e. When the only or last indorsement is an indorsement in blank.

When instrument payable to bearer.

Bearer means the person in possession of a bill or note which is payable to bearer . An instrument payable to bearer may be
transferred by delivery without indorsement (Sec. 30.) and payment to any person in possession thereof in good faith and without notice that
his title is defective, at or after maturity (Sec. 88.), discharges the instrument. Delivery alone is enough to effect negotiation of the instrument.
(Sec. 30.) Whoever possesses it is the bearer.

1. Expressed to be payable to bearer.

EXAMPLE: "I promise to pay to bearer P1,000.00."
But an instrument payable to the "bearer P" is not negotiable, since the word "bearer" in such case merely described "P." The instrument is,
therefore, payable to a definite person only.
2. Payable to person named therein or bearer.
EXAMPLES: "Pay to P or bearer P10,000.00." "Pay to P or holder P10,000.00
3. Payable to order of a fictitious person.
EXAMPLE: "Pay to John Doe or order PI,000.00." The bill is payable to bearer and not to order because John Doe is a fictitious person. A name
is fictitious when it is feigned or pretended.
 4. Payable to order of a non-existing person.
EXAMPLE: "Pay to the order of the King of the Pacific Ocean." In this case, the payee named is one who does not exist and had never existed.
Since indorsement is obviously impossible, the manifest intention of the drawer is to make the instrument a bearer paper negotiable by delivery
5. Name of payee not name of person.
EXAMPLES: "Pay to cash/' "Pay to cash or order." "Pay to sundries." "Pay to payroll." In the above examples, the instrument does not purport to
designate a specific payee. In making an instrument payable to an impersonal payee, the maker or drawer intends the same to be payable to
bearer. Like the fictitious payee bearer instrument, the indorsement of this bearer instrument by the payee is impossible.
6. Last indorsement in blank.
EXAMPLE: Pay to A (Sgd.)P
Pay to B (Sgd.) A
(Sgd.) B
The bill which is payable to the order of P, is indorsed especially by P to A (see Sec. 34.) and A further indorses it to B who merely signs his
signature on the back without indorsing the bill to a specified person and delivers it to C. The instrument becomes also payable to bearer. C may
negotiate the bill by delivery since the last indorsement is in blank