Unauthorised Overdrafts Sample Clauses
The 'Unauthorised Overdrafts' clause defines the rules and consequences when an account holder exceeds their agreed credit limit without prior approval from the bank. Typically, this clause outlines the fees, higher interest rates, or penalties that will be charged for any unauthorised borrowing, and may also specify the bank's right to demand immediate repayment of the overdrawn amount. Its core function is to deter customers from exceeding their limits without permission and to protect the lender from unapproved credit risk.
Unauthorised Overdrafts. 3.1.1 If the Bank receives an instruction for the payment of any sum in excess of the credit balance on the Account the Bank may (but is not obliged to) decline to carry out such instruction.
3.1.2 If several instructions for several payments or other transactions are received by the Bank which, in aggregate, exceed the amount of the credit balance on the Account, the Bank may at its discretion select which transaction or transactions will be executed by the Bank without reference to the date of dispatch of the Client’s instructions or when they were received by the Bank.
3.1.3 If a debit balance arises on the Account (however caused) without the Bank’s consent, the Client will immediately pay to the Bank on demand:
3.1.3.1 interest on the overdrawn amount at the rate set out in the Bank’s Charges for unauthorised overdrafts;
3.1.3.2 an overdraft arrangement fee as set out in the Bank’s Charges.
Unauthorised Overdrafts. If the borrower’s debt to the Bank under this contract exceeds the amount granted, the borrower shall upon demand pay the difference. In this case the borrower shall also pay interest on the overdrawn amount at the rate and on the grounds applied by the Bank at any time and also an unauthorised overdraft fee as set out in section 5 below. Unauthorised overdrafts also entitle the Bank to terminate the facility for repayment and/or suspend utilisation of the facility in advance. In this case the provisions in section 8 will apply.
Unauthorised Overdrafts. Without prejudice to the Payment Transactions being executed, the End Customer's Swan Account may not be overdrawn. If, as a result of a deliberate action by the End Customer, the Swan Account shows a debit balance that has not been settled within two days, ▇▇▇▇ reserves the right to charge the End Customer an intervention fee for managing this overdraft. These fees are mentioned in the appendix to these Terms of Use.