Legal Definitions - payable

Definition: “Payable” is a term used to describe a sum of money that is owed or due to be paid. The meaning of the term depends on the context and jurisdiction in which it is used. It is commonly used in insurance, bills, and bankruptcy proceedings.

For example, in the context of insurance, “payable” refers to a sum of money that is legally due but has not yet been paid. In a court case called Royal Indem. Co. v. Wyckoff Heights Hosp., the court defined “payable” in this way. In contrast, in the context of taxes, “payable” refers to a tax that is capable of being paid. In a court case called In re Joyce, the court defined “payable” within the phrase “taxes become payable” in this way.

Some common uses of the term “payable” include:

• Accounts Payable: This refers to the money that a company owes to its suppliers or vendors for goods or services that have been received but not yet paid for.
• Payable on Demand: This refers to a sum of money that is owed and can be demanded by the creditor at any time.
• Payable-on-Death Designation: This refers to a designation made on a bank account or other financial asset that specifies who will receive the asset when the account holder dies.

These examples illustrate how the term “payable” can be used in different contexts to refer to different types of money owed or due to be paid. Understanding the context in which the term is used is important for understanding its meaning.