Overdraw
/ˌoʊvərˈdrɔː/
Definitions
- (v.) To withdraw more money from a bank account than the available balance, creating a negative balance or overdraft.
He was charged a fee after he overdraw his checking account.
- (n.) The act or instance of drawing more funds from an account than are available, resulting in an overdraft.
The bank imposed penalties for the overdraw on her account.
Forms
- overdraws
- overdrawing
- overdrew
- overdrawn
Related terms
See also
Commentary
In legal and financial drafting, clarify whether 'overdraw' refers to the act or the resulting overdraft to prevent ambiguity.
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.