DEFINITION of 'Waiver Of Demand'

An agreement by the party that has endorsed a check or draft to accept legal responsibility, without being formally notified, should the original issuer of the check or draft default. The waiver of demand may be express or implied; it may also be oral or written unless oral waivers are specifically prohibited by law.

BREAKING DOWN 'Waiver Of Demand'

The term also refers to a bank's waiver of its right to formal notification when it presents short-term negotiable debt instruments such as drafts or banker's acceptances to a Federal Reserve bank for rediscounting. In such instances, the Federal Reserve considers the bank's endorsement as a "waiver of demand, notice and protest" if the original issuer defaults on its debt obligation.

RELATED TERMS
  1. Waiver

    The voluntary action of a person or party that removes that person's ...
  2. Bank Draft

    A type of check where the payment is guaranteed to be available ...
  3. Treasurer's Draft

    A type of bank draft that is payable through a designated bank. ...
  4. Waiver Of Premium For Payer Benefit ...

    A clause in an insurance policy that says that the insurance ...
  5. Foreign Draft

    An alternative to foreign currency. A foreign draft is a bank ...
  6. Time Draft

    A type of foreign check that is guaranteed by the issuing bank, ...
Related Articles
  1. Investing

    ETF Fees and Waivers: The Devil Is in the Details

    ETFs are popular because of their low costs. But just how cheap they really are depends on whether there is a fee waiver and how often it is renewed.
  2. Personal Finance

    What's a Bank Draft?

    A bank draft is a type of check. The bank guarantees payment, making it a more attractive option for the check recipient.
  3. Personal Finance

    Do This When Bad Weather Disrupts Your Flight

    Getting a "weather waiver" when a storm threatens can save your trip – and your travel budget.
  4. Personal Finance

    Understanding Endorsements

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

    ETF Gross vs. Net Expense Ratios: How They Differ

    If you're going to invest in ETFs, you should know the intricacies of expense ratios.
  6. Managing Wealth

    3 Steps To Take If You Miss Your RMD Deadline

    If you fail to take the required minimum distribution from your retirement account, you need to take the appropriate steps.
  7. Retirement

    Important Changes If You Miss a IRA or Other Rollover Deadline

    A non-qualified distribution might still be tax and/or penalty free under certain conditions.
  8. Investing

    IRS Cuts Some Savers a Break on IRA/401(k) Rollovers

    The Internal Revenue Service is providing some relief to certain taxpayers who may have missed the 60-day window allowed for IRA and 401(k) rollovers.
  9. 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. ...
RELATED FAQS
  1. How can I cancel a bank draft that I have purchased?

    Learn about what a bank draft is and how it works, the circumstances under which a bank draft may be cancelled, and what ... Read Answer >>
  2. Can you ask your landlord to remove a waiver of subrogation clause from your lease?

    Learn how to remove a waiver of subrogation clause from a lease. Find out also why you might not want to strike this clause ... Read Answer >>
  3. Why is marketing important to a company in the utilities sector?

    Find out what a banker's acceptance is, how it works, and why it should be considered a safe and liquid money market instrument. Read Answer >>
  4. 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 >>
Trading Center