Bankers draft

danish303

Hi there 
I have a question about bank draft
A freind of mine has a business in Dubai he sold some goods on credit to a guy 
. The buyer give him a bank draft as a guarantee but the name on the bank draft is buyers name as payee and its a large amount. The buyer dissappeared without paying.
So my freind took the bank draft to HSBC in dubai to cash it but they told him since its issued from London and its a large amount he must take it to london.
Now my question is can he cash the draft bank ? 
How ? because its on buyers name as payee not my friends name.

Thanks 

notveryeducated

Your friend should call up his bank and ask. 

Ballard

If the payee on the draft is that of the buyer then unless they have endorsed it to your friend it’s not going to be much use to them.

In theory the buyer has left something of value to them as security but being as they’ve apparently scarpered I’d question the validity of the draft.