Treasurer's Draft

Treasurer's Draft
A type of bank draft that is payable through a designated bank. Treasurer's drafts are drawn from the issuer's own account. The designated bank does not verify either the signature or the endorsement of the check.

It is the issuing bank's responsibility to verify signature and endorsement on a Treasurer's draft. Corporations often use these drafts to pay freight bills. Insurance companies also use them to settle claims.


Investment dictionary. . 2012.

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