Bank Draft - Explained
What is a Bank Draft?
Written by Jason Gordon
Updated at September 26th, 2021
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
- Courses
What is a Bank Draft?
A bank draft refers to a bank-guarantee's payment issued on a payer's behalf. A draft guarantees the payee a secure and trusted payment method. A check is created by the bank to the payee drawn on the account of the bank. The payer's name or remitter is stated on the check, however, the bank is the body making the payment. A bank draft is synonymous to a cashier's check in terms of its functions.
Back To: COMMERCIAL LAW: CONTRACTS, PAYMENTS, SECURITY INTERESTS, & BANKRUPTCY
Related Topics
- Promissory Note
- Cashier's Check
- Convenience Check
- Certified Check
- Substitute Check
- Bill of Exchange
- Bank Draft
- Sight Draft
- Bankers Acceptance
Academic Research on Bankers Draft
- Contractual Defenses as Claims to the Instrument: The Right to Block Payment on a Banker's Instrument, Geva, B. (1979). Or. L. Rev., 58, 283.
- The bill of exchange and private banks in Lancashire, 17901830, Ashton, T. S. (1945). The economic history review, 15(12), 25-35.
- Bankers acceptances, LaRoche, R. K. (1993).
- Retail electronic payments systems for value transfers in the developing world, Maurer, B. (2008). Department of Anthropology, University of California.
- Performance bond: conditional or unconditional, Supardi, A., Yaakob, J., & Adnan, H. (2009).
- What a Lawyer Should Know about Bankers' Acceptances, Ryan Jr, R. H. (1981). Prac. Law., 27, 51.
- Methods of payment and foreign-exchange risk management among firms in Brunei Darussalam, Sirpal, R. (2009). The Journal of Risk Finance, 10(4), 377-392.
- Bankers' drafts and their status in law., Atkin, W. R. (1972).
- The Australian Bank Cheque-Some Legal Aspects, Weerasooria, W. S. (1975). Monash UL Rev., 2, 180.
- Third Party Cheques-Security or Snare, Tettenborn, A. (1998). RLR, 6, 63.
- Managing International Trade and Investment, Knott, G. (1998). Managing International Trade and Investment. In Financial Management (pp. 263-275). Palgrave, London.
- Accounting for the affairs of an importing trader, Claghorn, G. C. (1949). Journal of Accountancy (pre-1986), 87(000002), 124.
- Export financing, Kawas, R. B. (1997). Economic Development Review, 15(2), 61.
- Some Advantages of Letters of Credit, Llewellyn, K. N. (1929). The Journal of Business of the University of Chicago, 2(1), 1-16.
- Content and performance, Fontaine, M. (1992). The American Journal of Comparative Law, 40(3), 645-655.