Who is defined as one in possession of a commercial paper?

The term that defines someone in possession of a commercial paper is indeed the holder. In the context of commercial paper, the holder is the individual or entity that has physical possession of the document and has the legal rights associated with it, such as the right to receive payment or transfer the paper to another party.

When we consider the roles of the other terms: the issuer is the party that creates and sells the commercial paper, typically a corporation or government entity looking to raise funds. The payee is the person or entity to whom the payment is made, and the drawer is the individual or entity that writes the order, as in a check. While all these roles are crucial in the transaction of commercial paper, only the holder refers specifically to the party currently in possession of the document, making it the appropriate identification in this scenario.