Drawee


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Drawee

The party who is directed to pay as specified in a draft.

Drawee

1. The party, often a bank, directed to pay the stated amount to the payee on a draft or check.

2. The party to whom a bill of exchange is addressed. A drawee, in this sense, is also called an acceptor.
References in periodicals archive ?
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.
When concluding it, if the market price is superior to the convened price the drawee will exercise the option.
(19.) A drawee bank (or paying bank) is the bank in which the check is made payable to.
(102) The payee went to the drawee bank and sought its acceptance of the check and payment.
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that the insured was the technical drawee in the transaction because it suffered the loss when funds ultimately were withdrawn from its account.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.
Under this ruling, a completed gift occurs on the earlier of 1) the date that the donor has so parted with dominion and control under local law as to leave in the donor no power to change its disposition [as defined in Treasury Regulations section 25.2511-2(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.
(20.) 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.
The gift, therefore, remains incomplete until the drawee bank pays the check.