The legal definition of Drawee is The bank which has the drawer’s checking account from which a check is to be paid. (also drawee bank) BANKING the bank that pays the amount of money that is written on a cheque or bank draft by the owner of an account at that bank: A drawee is responsible for knowing his drawer’s signature and cannot recoup from the person who presented the draft if it turns out that the drawer’s signature was forged. The Legal Terms Drawee, Drawer Defined & Explained.
Drawer–(OALD, DBF) the person who writes a cheque or a bill asking a drawee to pay money to a payee–Lit. Drawee. A person or bank that is ordered by its depositor, a drawer, to withdraw money from an account to pay a designated sum to a person according to the terms of a check or a draft. A person who orders a bank to withdraw money from an account to pay a designated person a specific sum according to the term of a bill, a check, or a draft. The obligations of the drawer to the drawee and every subsequent holder lawfully entitled to the possession, are, that the person on whom he draws is capable of binding himself by his acceptance that he is to be found at the place where he is described to reside, if a description be given in the bill; that if the bill be duly presented to him, he will accept in writing on the bill itself, according to its tenor, and that he will pay it when it becomes due, if presented in proper time for that purpose; and that if the drawee fail to do either, he, the drawer, will pay the amount, provided he have due notice of the dishonor.
Collection occurs when the drawee bank (the bank ordered by the check to make payment) takes funds from the account of the drawer (its customer who has written the check) and presents it to the collecting bank. Drawee definition, a person on whom an order, draft, or bill of exchange is drawn. It seems to follow from this peculiarity, that the drawee must have been regularly advised by the drawer. The four forms are so printed that the date, name of the bank, amount, and name and address of the drawee register perfectly. Bank’s policy as to when funds deposited into an account will be available for withdrawal. Drawer: The person who writes a check or draft instructing the drawee to pay someone else.
A check made payable to the bearer is payable to anyone who presents the check to the bank for payment. There are three parties to the cheque- Drawer (maker of the cheque), Drawee (bank on which the cheque is drawn), Payee (to whom the amount of the cheque is payable). If a bank returned a cheque to the payee having correctly determined that there were insufficient funds with two endorsements, one being Refer to Drawer and the other, the drawer is a thief, the imputations arising from the publication of the first statement, made necessary by the bank s decision to refuse payment, will be an occasion of qualified privilege. The drawee bank can sue the depositary bank for breach of warranty. The drawer of the check can sue the drawee bank if it paid a check that was not properly payable.