The false pretense coverage endorsement, CA 25 03 07 97, declares that the coverage does not apply to a loss in which for any reason a bank or any other drawee fails to pay. We are curious as to the meaning of drawee. In a credit transaction, is the purchaser of the goods, that is, the owner of the credit card, the drawee?

Michigan Subscriber

The drawee is not the purchaser of the goods. Black's Law Dictionary (Sixth Edition) does a good job of describing a drawee with the following example.

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