“draft” can refer to a type of cheque known as a bank draft or cashier’s cheque, which is a cheque that is guaranteed by the issuing bank. The funds for a bank draft or cashier’s cheque are usually immediately debited from the account of the person or organization purchasing the draft, and the bank guarantees that the cheque will be honored when presented for payment. This makes bank drafts and cashier’s cheques a popular payment method for large purchases or transactions where the payee may not be comfortable accepting a personal cheque or another form of payment.

To obtain a bank draft or cashier’s cheque, you would typically need to visit your bank or financial institution and request one, providing the necessary funds and information for the cheque. The bank would then issue the draft, often with a fee for the service.

To draft a cheque, follow these basic steps:

1. Start by writing the date on the top right-hand corner of the cheque. It’s important to use the current date, as cheques are only valid for a certain period.

2. Write the name of the payee or the person or organization you are paying, on the “Pay to the order of” line. Be sure to spell the name correctly and legibly.

3. Write the amount that you are paying on the line beneath the payee’s name, using both numbers and words. For example, if you are paying $100, you would write “100.00” and “One Hundred Dollars” on the line.

4. Sign the cheque in the bottom right-hand corner, using the same signature on file with your bank. This verifies that you are the account holder and authorizes the payment.

5. If necessary, add any additional information, such as a memo or reference number, in the memo line or on the back of the cheque.

6. Finally, make a record of the cheque in your personal ledger or checkbook register, noting the date, payee, and amount.

It’s important to double-check all information on the cheque before submitting it to ensure it is accurate and complete.