In general, the UCC states that a drawee
bank is liable for fraud claims involving the drawer's signature on the face of a check and that a depository bank is liable for fraud claims involving the payee's endorsement on the back of the check.
Since the issuer of the check does not cede his interest in the funds to be transferred until the drawee
bank actually honors the check, there is no reason to believe that his general right to exclude has been impaired before that point.
Drawer--(OALD, DBF) the person who writes a cheque or a bill asking a drawee
to pay money to a payee--Lit.
In the case at bar, the drawee
provided the funds under the mistaken assumption that the drawer's signatures were genuine.
He added: "We are seeing a downward trend in cheque use overall, with increasing use of the internet and Maestro/Switch cards to make payments." As for the recent sharp increase in dishonoured cheques, the Marfin Laiki source said this is most likely due to the writing of post-dated cheques rather than conscious attempts to defraud the drawee
A draft has three parties; the drawer (person with funds) who instructs the drawee
(e.g., bank) to make a payment to a payee.
(137) In addition, the banking staff should educate depositors about the complicated area of law governing their deposits, and should advise them that there is always a chance, whether due to fraud or other cause, that the check will be dishonored by the drawee
and the treat has the same content as the bill of exchange, but there are three participants: the drawer, the drawee
and the beneficiary" (Manolescu, 2006).
By issuing a bill of a exchange, a buyer (the debitor, in this context known as the drawee
) can pay the seller (payee).
Check 21 requires all drawee
banks (19) to accept substitute checks from depository banks (20) in lieu of original checks.
For example, no gift is made at the moment the donor gives the donee a personal check or note; the transfer of a personal check is not complete and taxable until it is paid (or certified or accepted) by the drawee
or it is negotiated for value to a third person.