J. MILLARD TAWES, Governor                        837

(3) An instrument made payable both to order and to bearer is
payable to order unless the bearer words are handwritten or type-
written.

3—111. Payable to Bearer.

An instrument is payable to bearer when by its terms it is payable
to

(a)  bearer or the order of bearer; or

(b)  a specified person or bearer; or

(c)  "cash" or the order of "cash," or any other indication which
does not purport to designate a specific payee.

3—112. Terms and Omissions Not Affecting Negotiability.

(1)  The negotiability of an instrument is not affected by

(a)  the omission of a statement of any consideration or of the
place where the instrument is drawn or payable; or

(b)  a statement that collateral has been given to secure obligations
either on the instrument or otherwise of an obligor on the instrument
or in the case of default on those obligations the holder may realize on
or dispose of the collateral; or

(c)  a promise or power to maintain or protect collateral or to give
additional collateral; or

(d)  a term authorizing a confession of judgment on the instrument
if it is not paid when due; or

(e)  a term purporting to waive the benefit of any law intended for
the advantage or protection of any obligor; or

(f)  a term in a draft providing that the payee by indorsing or
cashing it acknowledges full satisfaction of an obligation of the
drawer; or

(g)  a statement in a draft drawn in a set of parts (Section 3—
801) to the effect that the order is effective only if no other part
has been honored.

(2)  Nothing in this section shall validate any term which is other-
wise illegal.

3—113. Seal.

An instrument otherwise negotiable is within this Sub-title even
though it is under a seal.

3—114. Date, Antedating, Postdating.

(1)  The negotiability of an instrument is not affected by the fact
that it is undated, antedated or postdated.

(2)  Where an instrument is antedated or postdated the time
when it is payable is determined by the stated date if the instrument
is payable on demand or at a fixed period after date.

(3)  Where the instrument or any signature thereon is dated, the
date is presumed to be correct.