BANKING AFFAIRS

Detailed explanation-1: -the drawer is the party that issues a bill of exchange – the ‘creditor’; the beneficiary or payee is the party to which the bill of exchange is payable; the drawee is the party to which the order to pay is sent-‘the debtor’.

Detailed explanation-2: -(1) Drawer is the maker of the bill of exchange. A seller/creditor who is entitled to receive money from the debtor can draw a bill of exchange upon the buyer/debtor. The drawer after writing the bill of exchange has to sign it as maker of the bill of exchange.

Detailed explanation-3: -When drawer held the bill till maturity, the drawer and the payee is same person.

Detailed explanation-4: -Drawer/Maker: Drawer is the debtor who promises to pay the amount to lender or creditor. Payee: Payee is the creditor who is been promised by the borrower or debtor about the pending payment.