ANG TEK LIAN V.

CA 87 PHIL 383
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, wasnt indorsed by the defendant, and thus, isnt 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 drawers indorsement. Of course, if the bank is not sure of the bearers identity or financial solvency, it has the right to demand for identification and/or assurance against possible complicationsfor instance, forgery of the drawers 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 draweror some other persons known to itbe 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.