Answer:
A check peyable to cash is a "bearer" instrument in the eyes of the Uniform Commercial Code meaning that whomever is in posession of the item can endorse it and receive the cash. Best practice is to instruct the individual receiving the cash to endorse the back as this may not be the same as the drawer of the check. Without an endorsement, the bank will not have a paper record of who negotiated the check.
First published on BankersOnline.com 7/9/12