Overdrafts
/ˈoʊvərˌdræfts/
Definitions
- (n.) Amounts withdrawn from a bank account exceeding the available balance, often creating a debt obligation.
The customer incurred overdrafts after writing checks that surpassed his account balance.
Forms
- overdraft
Related terms
See also
Commentary
Overdrafts typically arise in banking and financial law, requiring clear agreement terms to define liability and fees.
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.