Simple Definition of overdraft
: an amount of money that is spent by someone using a bank account that is more than the amount available in the account : an amount that is overdrawn from an account
First Known Use of overdraft
Legal Definition of overdraft
1 : the act or result of drawing on a bank account for more than the balance; also : the amount exceeding the balance in an overdraft
2 : a loan or credit extended on a current account especially to established or institutional customers
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