Legal Definition and Related Resources of Overdraft

Meaning of Overdraft

A term in banking parlance meaning any adverse balance in the customer’s general account whether the balance was created by charging up checks of the customer or debiting past due bills and notes to that account. The resulting debit balance against the customer is called an overdraft. It is the payment by a bank from its funds of a check or draft drawn upon it by a depositor who does not have sufficient funds on deposit to pay the check or draft. American surety Co. v First Nat. Bank, (D.C.W.Va.) 50 F.Supp. 180. under §4- 401(1) of U.C.C., as against its customer, a bank may charge against his account any item which is otherwise properly payable from that account even though the charge creates an overdraft.

Related Entries of Overdraft in the Encyclopedia of Law Project

Browse or run a search for Overdraft in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.

Overdraft in Historical Law

You might be interested in the historical meaning of this term. Browse or search for Overdraft in Historical Law in the Encyclopedia of Law.

Legal Abbreviations and Acronyms

Search for legal acronyms and/or abbreviations containing Overdraft in the Legal Abbreviations and Acronyms Dictionary.

Related Legal Terms

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See Also

  • Law Dictionaries.
  • Commercial Paper.
  • Overdraft in Law Enforcement

    Main Entry: Law Enforcement in the Legal Dictionary. This section provides, in the context of Law Enforcement, a partial definition of overdraft.


    See Also

    • Law Enforcement Officer
    • Police
    • Law Enforcement Agency

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