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LSDefine
Simple English definitions for legal terms
drawee
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A quick definition of drawee:
A drawee is the person or organization that has been told to pay a certain amount of money to someone else. Usually, the drawee is a bank. When someone writes a check, they are telling their bank (the drawee) to pay the person they are giving the check to (the payee). It's important to remember that the drawee is not the same as the person or organization writing the check, but rather the bank where the money is being taken from.
A more thorough explanation:
Drawee is the party that has been ordered by the drawer to pay a certain sum of money to the person presenting the check (the payee). Usually, the drawee is the bank.
For example, if John writes a check to Jane for $100, John is the drawer, Jane is the payee, and the bank where John has an account is the drawee. The bank is responsible for paying Jane the $100 when she presents the check.
In Weston v. FedEx Office & Print Servs., the court held that a drawee means the bank on which the check is drawn. This means that the drawee is the bank where the money being disbursed to the employee is held and not the employer who happens to be a bank. Similarly, in Al Sarena Mines v. SouthTrust Bank, the court held that although drawee is not defined in the commercial code of Alabama, the drawee is the bank where the account on which the check is drawn is maintained.