FACTS:

Knowing he had insufficient funds, Ang Tek Lian issued a check for P4000, payable  to  cash.    This  was  given  to  Lee  Hua  Hong  in  exchange  for  cash.  Upon  presentment  of  the  check,  it  was dishonored  for  having  insufficient funds.  It is argued that the check, being payable to cash, wasn’t indorsed by the defendant, and thus, isn’t guilty of the crime charged.
 

HELD:

A  check  drawn  to  the  order  of  “cash”  is  payable  to  bearer,  and  the  bank may  pay  it  to  the  person  presenting  it  for  payment  without  the  drawer’s indorsement.  Of course, if the bank is not sure of the bearer’s identity or financial  solvency,  it  has  the  right  to  demand  for  identification  and/or
assurance  against  possible  complications—for  instance,  forgery  of  the drawer’s  signature,  loss  of  the  check  by  the  rightful  owner,  raising  the amount payable, etc.  The bank therefore, requires for its protection that the  indorsement  of  the  drawer—or  some  other  persons  known  to  it—be obtained.    A  check  payable  to  bearer  is  authority  for  payment  to  the holder.  Where a check is in the ordinary form and is payable to bearer so that  no  indorsement  is  required,  a  bank  to  which  it  is  presented  for payment need not have the holder identified, and is not negligent in failing to do so.