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Definition of 'Treasurer's Draft'
A type of bank draft that is payable through a designated bank. Treasurer's drafts are drawn from the issuer's own account. The designated bank does not verify either the signature or the endorsement of the check.
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Investopedia explains 'Treasurer's Draft'
It is the issuing bank's responsibility to verify signature and endorsement on a Treasurer's draft. Corporations often use these drafts to pay freight bills. Insurance companies also use them to settle claims.
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