Common use of Unauthorised Overdrafts Clause in Contracts

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.