Black’s Law Dictionary 7th Edition, page 508:
draft, n. 1. An unconditional written order signed by one person (the drawer) directing another person (the drawee or payor) to pay a certain sum of money on demand or at a defi nite time to a third person (the payee) or to bearer. • A check is the most common example of a draft. – Also termed bill of exchange ; letter ofexchange. Cf. NOTE (1).
bank draft . A draft drawn b y o n e financial institution on another.
clean draft. A draft with no shipping docu ments attached.
demand draft. See sight draft.
d o c u m e n t a r y d r a ft . A p a y m e n t d e m a n d conditioned on the presentation of a docu ment, such as a document of title, invoice, certificate, or notice of default.
export draft. A draft drawn by a domestic seller on a foreign buyer, directing the buyer to pay the trade amount to the seller or the seller’s bank.
foreign draft. A draft drawn in one country or state but payable in another. – Also termed foreign bill of exchange; international bill ofexchange.
inland draft. A draft drawn and payable in the same state or country.
overdraft. See OVERDRAFT.
share draft. A demand that a member draws against a credit-union share account, payable to a third party. • A share draft is similar to a check that is written to draw funds out of a checking account at a bank.
sight draft. A draft that is payable on the bearer’s demand or on proper presentment to the drawer. – Also termed demand draft.
time draft. A draft that contains a specified payment date. UCC § 3-108. – Also termed time bill.
2. The compulsory enlistment of persons into military service < his illness disqualified him from the draft>. – Also termed conscription. 3. An initial or preliminary version <the sec ond draft of the contract > .
draft, vb. 1 . To write or compose < to draft a contract > . 2. To recruit or select (someone) <to draft someone to run for political office> <to draft someone into the armed services>.
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