Fictitious Payee Law and Legal Definition

In negotiable instrument, fictitious payee refers to a fictitious person in whose name the instrument is drawn. A person draws an instrument in the name of the fictitious person with the intent that such payee shall not take anything from the instrument. The fictitious person named in the instrument has no right over the instrument. The name of the payee borne in the instrument can be any name used by the maker of the instrument.