What is ‘Waiver Of Demand’
An agreement by the party that has endorsed a check or draft to accept legal responsibility, without being formally notified, should the original issuer of the check or draft default. The waiver of demand may be express or implied; it may also be oral or written unless oral waivers are specifically prohibited by law.
Explaining ‘Waiver Of Demand’
The term also refers to a bank’s waiver of its right to formal notification when it presents short-term negotiable debt instruments such as drafts or banker’s acceptances to a Federal Reserve bank for rediscounting. In such instances, the Federal Reserve considers the bank’s endorsement as a “waiver of demand, notice and protest” if the original issuer defaults on its debt obligation.
Further Reading
- Creditors' decisions to waive violations of accounting-based debt covenants – www.jstor.org [PDF]
- Agreements to waive or to arbitrate legal claims: an economic analysis – www.journals.uchicago.edu [PDF]
- Do Medicaid home and community based service waivers save money? – www.tandfonline.com [PDF]
- The role of United States Visa Waiver Program on cross-border travel – www.tandfonline.com [PDF]
- Contracting out of the fiduciary duty of loyalty: An empirical analysis of corporate opportunity waivers – heinonline.org [PDF]
- Waivers, federalism, and the rule of law – www.tandfonline.com [PDF]
- Class waivers to the non-manufacturer rule: Effects on small business utilization in public procurement – www.tandfonline.com [PDF]
