Legal Definitions - foreign draft

A foreign draft is a written order signed by one person, directing another person to pay a certain amount of money to a third person or to bearer. It is similar to a check, but it is payable in a different country or state.

For example, if a person in the United States wants to pay someone in Canada, they can use a foreign draft to transfer the money. The person would go to their bank and request a foreign draft for the amount they want to send. The bank would then send the draft to a bank in Canada, and the recipient can cash it at their bank.

Foreign drafts are also known as foreign bills of exchange or international bills of exchange.