On a cheque, there is space to write the name of the payee. It is possible to write in this space "bearer", i.e. anyone who has possession of the cheque. A cheque that is payable to the bearer is one which is expressed to be payable to the bearer. It starts with the words, "Pay bearer" in lieu of Pay Fred Smith. A cheque payable to Fred Smith may be transferred to a third party by endorsing it with the signature of the second party.