Simple English definitions for legal terms
Read a random definition: proof of service
Term: OVERDRAW
Definition: When you spend more money than you have in your bank account, it is called overdraw. This means you owe the bank money and it is called an overdraft.
Definition: To withdraw more money from an account than what is available, resulting in a negative balance or overdraft.
Example: If you have $100 in your bank account and you withdraw $120, you have overdrawn your account by $20.
Explanation: Overdrawing occurs when you spend more money than what you have in your account. This can happen when you use a debit card, write a check, or make an electronic payment. When you overdraw your account, the bank may charge you a fee and you will owe them the amount you overdrawn. It is important to keep track of your account balance and avoid overdrawn to avoid fees and negative consequences.