Commercial draft

Commercial draft

Demand for payment.

Commercial Draft

A request or demand for payment made by a bank on behalf of a third party. While the recipient of the commercial draft is not bound to honor it, refusal to do so may hurt his/her credit at the bank issuing the demand. For example, if Fred owes Joe money, Joe may ask a bank to issue a commercial draft, which Joe or a courier presents to Fred. Fred is not legally obliged to pay Joe, but if he does not, he may find difficulty securing a loan from the bank and other banks associated with it.
References in periodicals archive ?
According to the Company, Bank of America Merrill Lynch (BAML) has unveiled new enhancements to its Electronic Commercial Draft System (ECDS) which facilities domestic renminbi (RMB) draft settlements, offering a source of low-cost and short-term trade and supply chain financing to corporate trade clients.
The bank said that it has recently introduced enhancements to its Electronic Commercial Draft System (ECDS) and Trade Receivables Finance (TRF) capabilities.
During the meeting, the GCC trade ministers will discuss a number of issues and recommendations raised to them including the standard commercial draft laws, such as, the anti commercial fraud law, and consumer protection law.
During the meeting, the AGCC trade ministers will discuss a number of issues and recommendations raised to them including the standard commercial draft laws, such as, the anti commercial fraud law, and consumer protection law.
Content in initial issues includes coverage of topics such as: cross-border business in the EU and statutory disclosure requirements; tapping and data retention in communications networks; recent developments in corporate governance; new Turkish commercial draft law reforms; the impact of legal challenges on the evolution of web-based intelligent agents; identity theft; preserving data mining in law enforcement; waiver of a right to arbitrate by resort to litigation; financial collateral agreements; concept of privacy in space; and, international commercial arbitration.
To exploit the boom in supply chain finance business in China, Bank of America Merrill Lynch has recently introduced enhancements to its Electronic Commercial Draft System (ECDS) and Trade Receivables Finance (TRF) capabilities.

Full browser ?