Clubman, pure speculation on my part, but I would imagine the reason the CU don't guarantee 12.7K per customer is because their protection fund does not cover this amount if every single customer of the CU required it. I would imagine it would be more accurate to say that the CU guarantee to pay out as much (or all) of the protection fund as is needed up to a maximum of 12.7K per customer. That's my guess anyway!
I'm not sure this is correct, I thought a bank draft was as good as cash, as in if you were purchasing a house you could submit a bank draft as payment and it would be immediately accepted by the solicitor as versus a cheque which would not be as it would have to 'clear.' Also the person who submits the draft has already paid for the draft as in handed over the money.No - a bank draft is simply a cheque written by a bank. The Central Bank has no involvement.
Presumably the person who paid you with the bank draft would still owe you the money.