Question

A draft issued by the bank has been lost by the payee. He sends a letter to the issuing bank to stop the payment. The bank will _______.

• A. note caution and will advise the payee to contact purchaser of the draft
• B. not act on the request
• C. stop payment
• D. none of the above

Answer 1

Answer: (A)

note caution and will advise the payee to contact purchaser of the draft

A bank draft is a cheque drawn by the bank out of its own funds which bears more liquidity then a normal cheque. If a draft is lost by the payee and he immediately sends a letter to the bank informing the same then the bank will not his caution and stop the transfer as well as bank will advise the payee to contact the payer for another draft.