Legal Definitions - overdraw

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.