Treasurer's Draft

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.

BREAKING DOWN '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.

RELATED TERMS
  1. Demand Draft

    A method used by individuals to make transfer payments from one ...
  2. Bank Draft

    A type of check where the payment is guaranteed to be available ...
  3. Foreign Draft

    An alternative to foreign currency. A foreign draft is a bank ...
  4. Payable Through Draft

    A draft that is payable through a specific bank. Payable-through-draft ...
  5. Sight Draft

    A type of bill of exchange, in which the exporter holds the title ...
  6. Waiver Of Demand

    An agreement by the party that has endorsed a check or draft ...
Related Articles
  1. Career Education & Resources

    Treasurer: Career Path & Qualifications

    Learn what it takes to be a modern corporate treasurer, starting from undergraduate study and working up the ladder into a leadership role.
  2. Insurance

    The Challenging Role Of The Corporate Treasurer

    Corporate treasury management has evolved from an offshoot of accounting to a more specific and strategic career.
  3. Investing Basics

    Banker's Acceptance 101

    A banker's acceptance, a common way of financing international trade activity, provides a relatively safe, short-term vehicle for investors. An acceptance is a negotiable time draft that a bank ...
  4. Personal Finance

    Understanding Endorsements

    In financial terminology, endorsement has a couple of different meanings.
  5. Investing

    Bill of Exchange

    A bill of exchange is a document used in international trade to pay for goods or services. It is signed by the person promising to pay, and given to the person entitled to receive the money. ...
  6. Retirement

    7 Reasons To Review Or Revise Your Will

    Drafting a will and locking it away for good could negatively affect your beneficiaries.
  7. Professionals

    Budgeting Your Small Business

    Budgeting helps small businesses determine if they have enough money to fund operations, expand and generate income.
  8. Retirement

    Why You Should Draft A Will

    Don't trust the courts to follow your wishes - plan the distribution of your own assets.
  9. Investing Basics

    Retail Banking Vs. Corporate Banking

    Retail banking is the visible face of banking to the general public. Corporate banking, also known as business banking, refers to the aspect of banking that deals with corporate customers.
  10. Personal Finance

    The Pros And Cons Of Internet Banks

    Learn how internet banking services stack up against those of their brick-and-mortar peers.
RELATED FAQS
  1. Are accounts payable counted as revenue?

    See how accounts payable is treated on the balance sheet, and why it is considered an expense and liability rather than revenue ... Read Answer >>
  2. How do I obtain a banker's acceptance?

    Find out how to obtain a banker's acceptance, why you should treat it like a short-term loan and when you would most likely ... Read Answer >>
  3. What is the average profit margin for a company in the banking sector?

    Learn what the average profit margin is for companies in the banking sector, along with other evaluation metrics often used ... Read Answer >>
  4. Which constitutional amendment made income tax legal?

    The story of income tax is ripe with stops, starts and court battles. Due to British taxation being one of the triggers that ... Read Answer >>
  5. What is the average cost of a making a will?

    Learn about the costs of establishing a legally enforceable will, and discover the differences between hiring a lawyer for ... Read Answer >>
  6. What is the Activities of Daily Living (ADL) hierarchy scale?

    Find out how a banker's acceptance is different than a post-dated check, even though both instruments represent a claim against ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center