Overdraft Credit


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Overdraft Credit

A situation in which a bank allows an account holder to spend more than is currently in the account. Overdraft credit may be attached to accounts automatically, though usually it requires payment of an NSF fee.
References in periodicals archive ?
Total quantity or scope: Overdraft credit facility with values distributed as follows:
Target debt arises from automatic overdraft credit granted by other central banks in the Eurosystem when they carry out payment orders without a corresponding countertrade.
After accounting for the payments made by the extension of overdraft credit from the Federal Reserve System and those made by the receipt of incoming transfers from other banks, we assign the remaining payments to banks' maintained account balances at the Federal Reserve.
In 1994, for example, direct measures of daylight overdrafts show that the Federal Reserve extended about $50 billion in intraday overdraft credit on average during the day (table 1); and on any given day an average of about 2,400 institutions incurred daylight overdrafts in their accounts at the Federal Reserve out of a total of nearly 11,000 institutions with such accounts.
The Eurosystem thus effectively granted Greece over a billion euros per working day in additional overdraft credit, according to the latest figures released by the Bank of Greece.
Overdraft credit guarantee contracts tendered in the form of two parts, part 750 000 000 HUF per tender terms.
Contract award: treaties providing overdraft credit.