Common use of Unauthorised Overdrafts Clause in Contracts

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.