drawee


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Drawee

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 on whom a BILL OF EXCHANGE is drawn. See DRAW.

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.

References in periodicals archive ?
As we explained earlier, for traditional checks, a drawee bank is liable for fraud claims that involve the drawer's signature on the face of a check and a depository bank is liable for fraud claims that involve the payee's endorsement on the back of the check.
393, 396-400 (1992) (holding that a transfer does not occur under the Bankruptcy Code until the drawee bank honors a check, where a "transfer" is defined as the "parting with property or with an interest in property" (quoting 11 U.
The first is that the principle of finality of payment forms part of the common law and that it prevents the drawee bank from recovering the paid proceeds of a forged check from anyone other than the forger.
Contractual liability--Refers to a liability of any party who signs a negotiable instrument, whether as a maker, drawer, drawee, or endorser.
The drawee of a sale option, by means of the payment of a premium, obtains the right to sell underlying goods, in quantity and quality, to the seller.
A drawee bank (or paying bank) is the bank in which the check is made payable to.
The district court had concluded that the insured was the technical drawee in the transaction because it suffered the loss when funds ultimately were withdrawn from its account.
These include Connecticut's law requiring the drawee of a dishonored check to demand payment from the drawer in both Spanish and English; the laws on door-to-door solicitation sales (home-solicitation sales), requiring Spanish language notice of cancellation rights in Delaware, Kansas and Nebraska; the New Mexico law requiring subdividers of land to make disclosures in Spanish; the New York law requiring licensed check cashers to post fee schedules in both English and Spanish, and more.
In his program, he examined the allocation of check fraud losses under the Uniform Commercial Code and the effective use of the deposit agreement between the drawee bank and its customer.
2511-2(b)] or 2) the date the donee deposits the check, cashes the check, or presents the check for payment, if it is established that 1) the check was paid by the drawee bank when first presented for payment, 2) the donor was alive when the check was paid, 3) the donor intended to make a gift, 4) delivery of the check by the donor was unconditional, and 5) the check was deposited, cashed, or presented in the calendar year for which the completed gift treatment is sought and within a reasonable time of issuance.
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.
In a popular board game, drawing the "FREE Parking" card entitles the drawee to a pool of money collected in a kitty.