A DRAFT
A draft is a written order from the first party to the second party to pay to the third party a certain sum of money at a certain time. The first party is called the "drawer." The second party is the "drawee."
The third party is the "payee."
There are two kinds of draft.
The first is usually where the cashier of one bank, through his own check, draws on another bank for the cash difference in their accounts with each other.
The second form of draft is the most usual and is the one we shall here consider. The cashier's draft is always for cash and the demand is alwayshonored. The ordinary business draft may be for cash or for goods. The business draft is usually honored, but there are circumstances under which it may be ignored.
