1. Drafts

A draft is an unconditional written order by which one party di­rects a second party to pay to the order of a third party or to the bearer a certain sum of money on demand or at a definite time A draft is also known as a bill of exchange.

$ 510. 00 Nashville, Tennessee January 20, 2012 Thirty days after date

Pay to Order of Morrison G. Chase

Five hundred and ten dollars

Value received; Charge to Account of

To Margaret H. Sandford

no 15 Knoxville, Tennesse Garry A. Minton

The usual purpose of a draft is to collect money owed. A draft ini­tially involves three parties-the drawer, the drawee, and the payee. The drawer (Garry A. Minton) is the person who executes or draws the draft and orders that payment be made. The drawee (Margaret H. Sandford) is the person directed to pay the draft. Thepayee (Morri­son G. Chase) is the party to whom this commercial paper is made pay­able.

(Sanford most probably owes Minton $510 as a result of a previous transaction. Therefore Sanford is likely to honor the draft by paying Chase and in that way to pay her debt to Minton.)

Drafts are sometimes described in terms of the time of payment. If the draft is payable at sight or on demand-that is, when it is presented to the drawee by the one holding the draft-it is a sight draft. The drawee is expected to pay when the draft is presented.

If a draft is payable at a specified time, or if it is payable at the end of a specified period after sight or after the date of the draft, it is a time draft, as is illustrated in the example.

When a time draft is payable a number of days or months after sight, it must be presented to the drawee for acceptance in order to start the running of the specified time. Acceptance is the drawee's promise to pay the draft when due. When the draft states it is payable a number of days or months "after date," the time starts running imme­diately from the date of the draft.

WORDS TO REMEMBER

form	бланк
to provide	1)обеспечивать что-л.; 2) предоставлять, давать снабжать
fee	плата, сбор
to encode	кодировать
processing	обработка
blank	пустой, чистый
account	счет
to retain	удерживать
sizeable	значительный, существенный
remainder	остаток
to loan at interest	ссужать под проценты
earn a profit	зарабатывать, получать доход/прибыль
deliberately	сознательно действенный, имею­щий силу
issue a check	выставлять чек
guilty	виновен
crime	преступление
to dishonor	1) отказывать в акцепте (векселя);2) отказывать в платеже (по векселю)
payoff	выплата
effective	действительный, эффективный
to disregard	1) не обращать внимание; 2) не принимать во внимание, игнорировать
to lapse	1) истекать (о сроке); 2) терять силу
room	пространство, место

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