DRAWN BILL Meaning and
Definition
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A drawn bill refers to a payment instrument that enables the transfer of funds from one party to another. Also known as a draft or a banker's draft, a drawn bill is a written order issued by a payer (usually an individual or a company) to their financial institution requesting a specific amount of money to be paid to a designated recipient. It is essentially a promissory note, where the issuer guarantees payment of the specified amount to the payee.
The drawn bill is typically issued by someone who does not have immediate access to cash but wishes to make a secure payment. It serves as a convenient alternative to carrying large amounts of cash or writing personal checks, as it provides a higher level of guarantee and security.
The process involves the payer providing detailed instructions, including the recipient's name, the payable amount, and any specific conditions of payment. The payer's financial institution then draws up the bill and issues it on their behalf, ensuring the funds are transferred seamlessly. The recipient can then present the drawn bill to their financial institution to claim the specified amount, typically through a check cashing process.
Ultimately, a drawn bill acts as a reliable method of payment, offering assurances to the recipient that the specified funds are available and ready to be collected.
Common Misspellings for DRAWN BILL
- srawn bill
- xrawn bill
- crawn bill
- frawn bill
- rrawn bill
- erawn bill
- deawn bill
- ddawn bill
- dfawn bill
- dtawn bill
- d5awn bill
- d4awn bill
- drzwn bill
- drswn bill
- drwwn bill
- drqwn bill
- draqn bill
- draan bill
- drasn bill
- draen bill
Etymology of DRAWN BILL
The term "drawn bill" can refer to different things, so its etymology would depend on its specific context. However, if we consider "drawn bill" referring to a financial or legal document, particularly a bill of exchange, the etymology is as follows:- "Drawn" comes from the verb "to draw", which in this case means to create or write. It is derived from the Old English word "drāwan", meaning "to pull" or "to drag", which ultimately traces back to the Proto-Germanic root *draganą.- "Bill" in this context refers to a written contract or financial instrument. It originated from the Latin word "bulla", meaning "seal" or "document", which was also used in Medieval Latin to refer to a sealed document or letter. The term "bill" further developed and took on various meanings associated with different types of written documents over time.
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