Overdraw, Overdue

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.

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.

OVERDUE - A bill, note, bond or other contract for the payment of money at a particular day, when not paid upon the day, is overdue.

The indorsement of a note or bill overdue is equivalent to drawing a new bill payable at sight.

A note when passed or assigned when overdue is subject to all the equities between the original contracting parties.
   

This entry contains material from Bouvier's Legal Dictionary, a work published in the 1850's.