Definition of Sight draft

Sight draft

Demand for immediate payment.

Draft

An unconventional order in writing - signed by a person, usually the exporter, and addressed to the
importer - ordering the importer or the importer's agent to pay, on demand (sight draft) or at a fixed future
date (time draft), the amount specified on its face.

Bank draft

A draft addressed to a bank.

Commercial draft

Demand for payment.

Payable through drafts

A method of making payment that is used to maintain control over payments made
on behalf of the firm by personnel in noncentral locations. The payer's bank delivers the payable through draft
to the payer, which must approve it and return it to the bank before payment can be received.

Time draft

Demand for payment at a stated future date.

Trade draft

A draft addressed to a commercial enterprise. See:draft.

Bank overdraft

Money owed to the bank in a cheque account where payments exceed receipts.

Public Oversight Board

An independent private-sector body that oversees the audit practices
of certified public accountants who work with SEC-regulated companies.

Overdraft

The amount by which a check or other payments exceeds the funds on deposits.

Overdraft Protection

Is an agreement with the Bank or Financial Institution to cover overdrafts. This service will typically involve a fee and be limited to a pre-set maximum amount.

Overdraft System

System whereby a depositor may write cheques in excess of the balance, with the bank automatically extending a loan to cover the shortage.

Personal Overdraft Facility

A loan facility on a customers account at a financial institution allowing the customer to overdraw up to a certain agreed limit for an agreed period.

bank draft

A guaranteed form of payment which is issued in amounts over $5,000.

draft

A guaranteed form of payment which is issued in amounts over $5,000 (also see bank draft).

overdraft protection

A short-term source of credit which allows you to overdraw on your account up to a pre-established limit. For example, overdraft protection spares customers both the cost and the personal embarrassment of NSF cheques. Overdraft protection is attached to your PCF Chequing Account.

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