As you may recall from another lesson, for an instrument to be negotiable under Article 3, it must contain an unconditional promise or order to pay a fixed sum of money, be payable to bearer or to order, be payable on demand or at a definite time, and not state any promise or undertaking other than the promise or undertaking to pay money.

We’ve already discussed the first requirement; now, let’s look at the second and third requirements.

I. Payable to Bearer or to Order

For an instrument to be...