Meaning & use
drawee bank
Last updated
Meaning
nouncountablefinancespecialist
The bank that is ordered by a check or bill of exchange to pay money to the person named on it.
Grammar: Countable: one drawee bank, two drawee banks. Usually used with 'the'.
Patterns
- the drawee bank pays something
- the drawee bank refuses payment
When you write a check, your bank becomes the drawee bank.
The drawee bank must pay the amount stated on the check if the signature is genuine.
If the drawee bank dishonors the check, the holder can sue the drawer.
Word forms
| plural | drawee banks |
|---|
Common combinations
- the drawee bank refuses payment
- The drawee bank refused payment because the account was empty.
- the drawee bank honors the check
- The drawee bank honored the check and paid the money.
- liability of the drawee bank
- The liability of the drawee bank depends on the terms of the bill.
Synonyms and how they differ
- paying bank
- A more general term for the bank that makes the payment; 'drawee bank' is the precise legal term.
Word family
Commonly confused: drawee bank or drawer?
drawee bank vs drawer
The drawer writes the check; the drawee bank pays it. Do not mix them up.
Practice
In a check transaction, which party is the drawee bank?
Choose one answer.
The drawee bank is the one ordered to pay. The bank that writes the check is the drawer bank; the person who signs is the drawer.
Make it your own
Write a sentence using “drawee bank”, then check it and compare it with the examples above.