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

Agreements to waive or to arbitrate legal claims: an economic analysis
www.journals.uchicago.edu [PDF]
… where P(waiver) is the probability that the creditor will waive a covenant … and 3s>o. The logit models were estimated with a binomial classification of the dependent variable; that is, the violated debt covenants of the sample firms are classified as either waived or nonwaived …

Do Medicaid home and community based service waivers save money?
www.tandfonline.com [PDF]
… where P(waiver) is the probability that the creditor will waive a covenant … and 3s>o. The logit models were estimated with a binomial classification of the dependent variable; that is, the violated debt covenants of the sample firms are classified as either waived or nonwaived …

The role of United States Visa Waiver Program on cross-border travel
www.tandfonline.com [PDF]
… where P(waiver) is the probability that the creditor will waive a covenant … and 3s>o. The logit models were estimated with a binomial classification of the dependent variable; that is, the violated debt covenants of the sample firms are classified as either waived or nonwaived …

Contracting out of the fiduciary duty of loyalty: An empirical analysis of corporate opportunity waivers
heinonline.org [PDF]
… where P(waiver) is the probability that the creditor will waive a covenant … and 3s>o. The logit models were estimated with a binomial classification of the dependent variable; that is, the violated debt covenants of the sample firms are classified as either waived or nonwaived …

Waivers, federalism, and the rule of law
www.tandfonline.com [PDF]
… where P(waiver) is the probability that the creditor will waive a covenant … and 3s>o. The logit models were estimated with a binomial classification of the dependent variable; that is, the violated debt covenants of the sample firms are classified as either waived or nonwaived …

Class waivers to the non-manufacturer rule: Effects on small business utilization in public procurement
www.tandfonline.com [PDF]
… where P(waiver) is the probability that the creditor will waive a covenant … and 3s>o. The logit models were estimated with a binomial classification of the dependent variable; that is, the violated debt covenants of the sample firms are classified as either waived or nonwaived …