Definition of draw

1. withdraw money from an account in a bank or other depository.
2. receive money in advance, such as a draw against commissions or a draw of a loan.
3. execute a check or draft for the withdrawal of money.
4. prepare a draft of a legal document, such as a complaint, a deed, or a will.

1. number of newsstand copies of a magazine issue taken by wholesalers, distributors, or retailers before return of unsold copies to the publisher. See also newsstand returns.
2. form of salesperson's compensation whereby the salesperson is paid in advance against expected future sales.

a periodic advance of funds from a construction lender to a developer. construction loans generally provide for a schedule of draws, either at regular intervals during construction or pending construction of specific segments of the structures.

Example: A developer arranges a construction loan of $500,000. The funds are to be advanced in a series of draws as follows:

• $50,000 upon completion of final plans and specifications
• $200,000 upon completion of the foundation
• $150,000 upon completion of the frame, external surfaces, and roof
• $100,000 upon internal finishing