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 per Article 589, the holder of the cheque may dispute the objection with the drawee and the drawee shall receive the cheque against a receipt and shall notify the objecting party by registered letter with notice of receipt of the name and address of the holder.
Original checks will likely be destroyed by the drawee bank after the electronic image is sent to the depository bank.
78) The drawer ultimately bears responsibility for payment of the draft if it is not paid or accepted by the drawee.
Contract notice: Supply contract for the supply of medicines of the emergency service cologne via a non quantity drawee four-year framework agreement.
The captured images and the data are then signed and encrypted and sent to the clearing house or the central processing location and, thereafter, forwarded to the drawee or paying bank.
Further, 'dishonour of a cheque' is a criminal offence punishable with detention or fine in accordance with Article (401) of the Federal Law No 3 of 1987 on the Issuance of Penal Code of UAE (the 'Penal Code'), which states: "Detention or a fine shall be imposed upon anyone who, in bad faith, gives a draft (cheque) without a sufficient and drawable balance or who, after giving a cheque, withdraws all or part of the balance, making the balance insufficient for settlement of the cheque, or if he orders a drawee not to cash a cheque or makes or signs the cheque in a manner that prevents it from being cashed.
The modern definition of options is that of a contract in which the drawee by means of the payment of a put, acquires from the drawer the right to obtain compensations that delimit the effects of the fluctuation of certain economic variables.
A bill of exchange is a negotiable security issued by one party (the "drawer") and accepted by the other party (the "drawee"), instructing the drawee to pay a fixed sum of money, usually as part of a commercial transaction.
Applicable state law treated a check as a completed transfer only on acceptance by the drawee bank.
It must be in writing; it must bear a date; it must be for a certain amount; it must bear an authorized signature; it must have a drawee financial institution; and it must have a payee or be a bearer instrument.
The checks had been returned from the drawee bank stamped "insufficient funds.
Thus, even though under Maryland law the gifts were not completed until the drawee bank had accepted the checks, the gifts were considered completed in 1985 because of the relation-back doctrine and Albert's estate was not increased by $20,000.