Bank Overdraft
/ˈbæŋk ˌoʊvərˈdræft/
Definitions
- (n.) A bank overdraft is a credit facility allowing an account holder to withdraw more money than is available in their bank account up to an agreed limit.
The company relied on a bank overdraft to manage its short-term cash flow needs.
Forms
- bank overdrafts
Related terms
See also
Commentary
Bank overdrafts are typically formalized within banking agreements and can involve fees or interest; precise terms should be carefully drafted to clarify limits and obligations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.