Petitioner drew a check payable to the order of “cash” knowing that he had no funds. He delivered it in exchange of money. Petitioner was found guilty of estafa, but petitioner argued that the check had not been indorsed by him, hence, he should not be held guilty thereof.
Whether or not indorsement is necessary to negotiate a check payable to the order of “cash”.
NO. Indorsement is no longer necessary. Under the Negotiable Instruments Law (Sec. 9 [d]), a check drawn payable to the order of “cash” is a check payable to bearer, and the bank may pay it to the person presenting it for payment without the drawer’s indorsement. Being a bearer instrument, negotiation may be done by mere delivery of the instrument.