An unconditional order in writing, signed by a person (drawer) such as a buyer, and addressed to another person (drawee), typically a bank, ordering the drawee to pay a stated sum of money to yet another person (payee), often a seller. A draft, also called a bill of exchange, may be payable to a named person or their order (order draft), or to bearer (bearer draft). The most common versions of a draft are:
• sight draft, which is payable on presentation or demand
• time (or usance) draft, which is payable at either:
– a future fixed (specific) date
– a future determinable date (e.g. 30, 60, 90 days, etc.)