Overdraw

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TO OVERDRAW. To draw bills or cheeks upon an individual, bank or other corporation, for a greater amount of funds than the party who draws is entitled to.
     2. When a person has overdrawn his account without any intention to do so, and afterwards gives a check on a bank, the holder is required to present it, and on refusal of payment to give notice to the maker, in order to hold him bound for it; but when the maker had overdrawn the bank knowingly, and had no funds there between the time the check was given and its presentment, the notice is not requisite. 2 N. & McC. 433.

A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.
References in periodicals archive ?
Councillor Tim Nelson said it was probably the only time in Newport Town Council's history it had gone overdrawn.
After having gone through Yu's BlackBerry Messenger (BBM) chat logs with fugitive financier Low Taek Jho, it was revealed how the cheque issued from one of Najib's account numbered 2112022011-906 would have bounced if not for the cash injection as the current account was at that time overdrawn by RM55,000.
Some people experience difficulties in opening a standard current or savings account if they have had a poor credit rating or low income, or because they already have a current account which is overdrawn. A person in this situation may be able to open a basic bank account.
It costs PS87.36 to be PS285 overdrawn with Natwest/RBS, PS85.44 with TSB, and PS81 with Santander and Barclays, while with HSBC it's PS15.48 and Nationwide charges PS14.76.
According to uSwitch.com, 20% of people have no idea what their overdraft costs them and 60% didn't know they could switch bank account while being overdrawn.
A COUNCIL employee discovered a petty cash account was more than PS40,000 overdrawn after a bank statement was sent to her by mistake, a court has heard.
She said: "Yes, a petty-cash account should never be overdrawn."
By July 13, 2004, Moralez had allegedly overdrawn the account 27 times and the account had a negative balance of $502.93, according to the counterclaim.
If the terms and conditions say the circumstances when it will, such as when you go overdrawn without authorisation.
Any such sum is treated as a loan from the company, and if this balance is not repaid or written off within nine months of the company's accounting period end, HMRC impose a penalty on the company of 25% of the overdrawn balance at the period end.
CONSUMER campaigners are urging stronger action to "clean up" the credit market after finding that going overdrawn with your bank can be as expensive as using a payday lender.
In addition, Uzbekistan has not paid for overdrawn electricity valued at more than $7 million.