Overdraft | Practical Law

Overdraft | Practical Law

Overdraft

Overdraft

Practical Law UK Glossary 9-107-6952 (Approx. 2 pages)

Glossary

Overdraft

A term which refers to either:
  • The amount by which the cumulative withdrawals exceed the cumulative deposits on a bank account.
  • An uncommitted revolving loan facility which can be utilised and repaid by the borrower at any time, and is almost invariably repayable on demand (that is, capable of being required by the lending bank to be repaid (or reduced to zero) at any time).