Akademik

bankers' draft
Either an instrument in the form of a cheque consisting of an order to pay drawn by a branch of the debtor's bank on another branch of the same bank or an instrument in the form of a promissory note representing a promise by the debtor's bank to pay the specified sum. In contrast to a cheque drawn by the debtor on his bank, a bankers' draft represents a contractual obligation of payment of the debtor's bank and not the debtor.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.