Legal Definitions - drawer

A drawer is the person or entity who creates and signs a financial instrument, such as a check or money order, thereby issuing an order to another party (typically a bank or financial institution) to pay a specified sum of money to a designated recipient. In essence, the drawer is the initiator of the payment instruction.

• Example 1: Paying a Monthly Utility Bill

  Maria receives her electricity bill. She decides to pay it by writing a personal check. She fills in the amount, the utility company's name, and signs the check before mailing it.

  Explanation: Maria is the drawer because she is the individual who *writes and signs* the check, which serves as an instruction to her bank to transfer funds from her account to the utility company.

• Example 2: A Small Business Paying its Suppliers

  "Green Thumb Landscaping," a small business, needs to pay its plant nursery supplier for a recent order. The owner, David, prepares a business check from the company's checking account, signs it on behalf of Green Thumb Landscaping, and sends it to the nursery.

  Explanation: Green Thumb Landscaping (represented by David) is the drawer. By *issuing and signing* the business check, the company is *ordering* its bank to disburse the payment to the plant nursery.

• Example 3: Sending Funds via a Money Order

  John wants to send money to his nephew who lives in another state, but his nephew doesn't have a bank account. John purchases a money order from a postal service outlet, fills in his nephew's name as the payee, and signs the money order before sending it.

  Explanation: John is the drawer in this situation. He *creates and signs* the money order, which acts as an instruction to the postal service (or the financial institution backing the money order) to pay the specified amount to his nephew.