Overdraft

views updated May 23 2018

OVERDRAFT

A check that is drawn on an account containing less money than the amount stated on the check.

The term overdraft is also used in reference to the condition that exists when vouchers or purchase orders are drawn in amounts exceeding the amount that has been appropriated or budgeted.

cross-references

Commercial Paper.

overdraft

views updated Jun 11 2018

o·ver·draft / ˈōvərˌdraft/ • n. a deficit in a bank account caused by drawing more money than the account holds.