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 ?
On December 8, ICBC successfully completed an outright sale of commercial draft transfer discount at Shanghai Commercial Paper Exchange, representing the first bill transfer discount business since the opening of the Exchange.
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.
It is a "Commercial Draft", which can be obtained by contacting Mr.
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.
The Commercial Cooperation Committee talks on Wednesday discussed the operation of several joint commercial drafts in preparation for their adoption as mandatory across all of the six states like the anti-commercial fraud law, and an auditing law.
The first section of Chapter 2 (Drafts) addresses the drawing of drafts.(62) Article 19 states that "[a] draft is a bill signed by the drawer, requiring the entrusted payer to make unconditional payment in the fixed amount at the sight of the bill or at a fixed date to the payee or the holder."(63) The statute applies to bank drafts as well as commercial drafts.(64) Drafts, and in particular bank drafts, are important payment mechanisms in China today.(65) A draft is considered drawn when the drawer signs and delivers it to the payee.(66)

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