Pay To Bearer


DEFINITION of 'Pay To Bearer'

Any check or draft that can be transferred to the holder by delivery without having to be endorsed. As the name implies, "pay to bearer" refers to any negotiable instrument that is simply paid to the bearer without requiring proof of identity. Pay-to-bearer instruments are not registered in the name of a specific owner and will pay to whoever bears them.


A bearer bond is one type of pay-to-bearer instrument. These bonds pay interest for each detachable coupon redeemed, regardless of who redeems them.

  1. Check

    A written, dated and signed instrument that contains an unconditional ...
  2. Pay To Order

    A check or draft that must be paid via endorsement and delivery. ...
  3. Bank Draft

    A type of check where the payment is guaranteed to be available ...
  4. Bearer Bond

    A fixed-income instrument that is owned by whoever is holding ...
  5. Bank

    A financial institution licensed as a receiver of deposits. There ...
  6. Negotiable

    1. Describing the price of a good or security that is not firmly ...
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