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TeachMeFinance.com - explain To Order
To Order -- A term on a financial instrument or title document indicating that it is negotiable and transferable.
historic definition...
To order -- A pecuniary instrument so made out calls for
payment to the holder to whom it has been properly indorsed ;
when goods are shipped to order the consignee is subsequently
to be named.
A check made payable to a person or to a person or order,
as to Richard Smith or to Richard Smith or order, must be indorsed with the name of that person before it is collectable.
The name of the person must be written across the back of the
check, which, when the name stands thus alone, makes the
check payable to bearer, or the check must be formally assigned
to another on its back by the one in whose favor it is
drawn.
In Great Britain checks payable to order are similar in effect
to those payable to bearer in the United States. In Great
Britain when a bank or banker has paid in good faith in the
ordinary course of business a check drawn on it or him it is
not incumbent on it or him to show that the indorsement of
the payee or any subsequent indorsement was made by or
under the authority of the person whose indorsement it purports
to be and the bank or banker is deemed to have paid the
bill in due course, although such indorsement has been forged
or made without authority.
About the author
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Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".
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Copyright © 2005 by Mark McCracken, All Rights Reserved.
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