1. an amount of money which a company or person can withdraw from a bank account, with the bank's permission, despite the fact that the account is empty

    Abbreviation O/D

    The bank has allowed me an overdraft of £5,000.

    (Note The US term is overdraft protection.)
    we have exceeded our overdraft facilities
    we have taken out more than the overdraft allowed by the bank
  2. a negative amount of money in an account, i.e. a situation where a cheque is more than the money in the account on which it is drawn

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clearing bank
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