Share Draft Checking Account

A share draft or a bill of exchange is a financial document that is drawn up in a strictly ordered form, containing an unconditional order from the lender (drawer) to the borrower (drawee) to pay a certain amount of money indicated in the bill of exchange to a third party (remitter) at the agreed time or to the bearer of the bill of exchange. A draft check may be one of the documents of title of a foreign trade agreement.

A draft is defined as a document issued in the established form, which contains an unconditional proposal of one party – the drawer, to the other party, a drawee, to pay a certain amount of money to a third party, the drawer (remitter) within the specified period. Sometimes the word “offer” is replaced by the word “order”.

A share draft (bill of exchange) must contain:


This type of securities has the following features:

Bills are issued in the form of strict accountability with several degrees of protection to ensure that there are no forgeries. They allow you to make deals without factoring, i.e. without involving banks as a guarantor.

Types of share drafs

In addition to promissory bills, there are transferable, bank, treasury securities that differ by the issuer, the scheme of presentation and redemption. The document can be considered an order to return the debt to the bearer, to a third party. The issue depends on the ultimate purpose of the security, the type of organization of the issuer. Thus, treasury bills are always issued by the state in order to attract funds to pay off its expenses.

There are several types of securities of this type:

There are variants of friendly drafts used for mutual lending to two or more individuals. As well as domiciled bills, which allow the transfer of the right to redemption to third parties with an indication of another organization responsible for the obligations.

Types of draft transactions

The banking system most often turns out to be a promissory note issuer. Securities allow banks to attract even more funds for the issuance of loans and other financial transactions. The acquirers are legal entities / individuals, regardless of the type and scope of their activities.

The turnover of share drafts implies the following operations:

The list of transactions with promissory drafts and bills of exchange fully coincides with the accounting policy of commercial organizations: each issued document is subject to accounting in a database, where the date of issue / return is subsequently recorded. The issuer is guided by the series and number, which are unique for each document.