Drawee

DEFINITION of 'Drawee'

A legal and banking term used to describe the party that has been directed by the depositor to pay a certain sum of money to the person presenting the check or draft. A typical example is if you are cashing a paycheck. The bank that cashes your check is the drawee, your employer who wrote the check is the drawer, and you are the payee.

 

BREAKING DOWN 'Drawee'

The term "bill of exchange" is sometimes used to describe the drafts, orders and checks that are presented for payment. The bill of exchange is just an unconditional order for one party to pay another that is in writing and signed.

 

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