Drawee

AAA

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.


INVESTOPEDIA EXPLAINS '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.



RELATED TERMS
  1. Promissory Note

    A financial instrument that contains a written promise by one ...
  2. Payee

    The party in an exchange who receives payment. A payee is paid ...
  3. Bank Draft

    A type of check where the payment is guaranteed to be available ...
  4. Rubber Check

    Another name for a "bounced check." A rubber check is a slang ...
  5. Cashier's Check

    A check written by a financial institution on its own funds. ...
  6. Certified Check

    A type of check where the issuing bank guarantees the recipient ...
Related Articles
  1. Bag The Best Bank Account
    Insurance

    Bag The Best Bank Account

  2. The Evolution Of Banking
    Credit & Loans

    The Evolution Of Banking

  3. Getting A Loan Without Your Parents
    Retirement

    Getting A Loan Without Your Parents

  4. When Good People Write Bad Checks
    Budgeting

    When Good People Write Bad Checks

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center