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Demand Draft


Demand Draft rate
also known as a remotely created check or a tele-check, is a check created by a seller with a buyer's checking account number on it, but without the buyer's signature. Instead of the signature, the check has verbiage such as "authorized by depositor (the buyer), lack of endorsement guaranteed by XYZ Bank". The seller deposits the check into his or her bank account, and the check then clears out of the buyer's account.

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