LNG Corporation and Midstates Utility Company enter a contract for a sale of liquefied natural gas. LNG draws a draft unconditionally ordering Midstates Utility to pay $50,000 to LNG's order in sixty days. Midstates Utility signs and dates the draft.
-Refer to Fact Pattern 23-2. On this instrument,LNG is
A)thebanker.
B)thedrawer.
C)themaker.
D)the trader.

Question

Quizplus · Accepted Answer

LNG is the drawer, as they are the one who created and initiated the draft.

LNG Corporation and Midstates Utility Company Enter a Contract for a Sale