Fictitious Payee 

Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order it here)      

Although the Uniform Commercial Code's Section 3-405(a)(b), which succeeded the Uniform Negotiable Instruments Law's Section 9(3), no longer contains the reference to "fictitious or nonexistent person," if in fact the maker of drawer of a negotiable instrument does make it payable to a fictitious or nonexistent payee and such fact is known to such maker or drawer, the situation is one indicating no intention that such payee shall have any interest in the instrument.  Accordingly, in such a situation an endorsement by any person in the name of the indicated payee will be effective, pursuant to Section 3-405(1)(b), Uniform Commercial Code, since the person signing as or on behalf of a maker or drawer intends the indicated payee to have no interest in the instrument.

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