70A-3-110 - Identification of person to whom instrument is payable.
70A-3-110. Identification of person to whom instrument is payable.
(1) The person to whom an instrument is initially payable is determined by the intent ofthe person, whether or not authorized, signing as, or in the name or behalf of, the issuer of theinstrument. The instrument is payable to the person intended by the signer even if that person isidentified in the instrument by a name or other identification that is not that of the intendedperson. If more than one person signs in the name or behalf of the issuer of an instrument and allthe signers do not intend the same person as payee, the instrument is payable to any personintended by one or more of the signers.
(2) If the signature of the issuer of an instrument is made by automated means, such as acheck-writing machine, the payee of the instrument is determined by the intent of the person whosupplied 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, includingby name, identifying number, office, or account number. For the purpose of determining theholder 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 ispayable to an account identified by number and by the name of a person, the instrument ispayable to the named person, whether or not that person is the owner of the account identified bynumber.
(b) If an instrument is payable to:
(i) 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 notthe beneficiary or estate is also named;
(ii) a person described as agent or similar representative of a named or identified person,the instrument is payable to the represented person, the representative, or a successor of therepresentative;
(iii) a fund or organization that is not a legal entity, the instrument is payable to arepresentative of the members of the fund or organization; or
(iv) an office or to a person described as holding an office, the instrument is payable tothe 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 ofthem and may be negotiated, discharged, or enforced by any or all of them in possession of theinstrument. If an instrument is payable to two or more persons not alternatively, it is payable toall of them and may be negotiated, discharged, or enforced only by all of them. If an instrumentpayable to two or more persons is ambiguous as to whether it is payable to the personsalternatively, the instrument is payable to the persons alternatively.
Repealed and Re-enacted by Chapter 237, 1993 General Session