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Drawee

   Also found in: Dictionary/thesaurus, Financial 0.02 sec.

A person or bank that is ordered by its depositor, a drawer, to withdraw money from an account to pay a designated sum to a person according to the terms of a check or a draft.

Cross-references

Commercial Paper.

drawee n. the party who is to be paid on a bill of exchange or check. (See: bill of exchange)

DRAWEE. A person to whom a bill of exchange is addressed, and who is requested to pay the amount of money therein mentioned.
     2. The drawee may be only one person, or there may be several persons. The drawee may be a third person, or a man may draw a bill on himself. 18 Ves. jr. 69; Carth. 509; 1 Show. 163; 3 Burr. 1077.
     3. The drawee should accept or refuse to accept the bill at furthest within twenty-four hours after presentment. 2 Smith's R. 243; 1 Ld. Raym. 281 Com. Dig. Merchant, F 6; Marius, 15; but it is said the holder is entitled. to a definite answer if the mail go out in the meantime. Marius' 62. In case the bill has been left with the drawee for his acceptance, he will be considered as having accepted it, if he keep the bill a great length of time, or do any other act which gives credit to the bill, and induces the holder not to protest it; or is intended as a surprise upon him, and to induce him to consider the bill as accepted. Chit. on Bills, 227. When he accepts it, it is his duty to pay it at maturity.



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? Mentioned in ? References in periodicals archive
 
Under the Uniform Commercial Code, a bank that accepts a check for deposit warrants to the drawee bank that all indorsements on the check are genuine, and the bank is liable to the drawee bank for the amount of the check plus expenses and lost interest if an indorsement on the check was forged.
ORDERS ISSUED UNDER BANK HOLDING COMPANY ACT by Federal Reserve Bulletin
The gift, therefore, remains incomplete until the drawee bank pays the check.
TaxClinic by Koppel, Michael D. / The Tax Adviser
The court ruled that although it is a general rule that a check is not absolute payment until it is paid by the drawee bank, a contract vendee of property cannot use this general rule to withdraw from a contract before her downpayment check is deposited and paid by the bank.
A stopped check does not invalidate sale contract by Schiff, Edward L. / Real Estate Weekly
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