Overdraft - lending by a bank to the client's current account for payment of settlement documents in case of insufficient or absent funds on the client's current account. In this case, the bank debits funds from the client's account in full, that is, it automatically provides the client with a loan for an amount exceeding the balance of funds.
An overdraft differs from a regular loan in that all the amounts credited to the client's account are sent to repay the debt. Sometimes there is a grace period for using the
overdraft, during which no interest is charged on the use of the loan. It depends on the bank's credit policy.
An insured event is an event that has caused losses to the Beneficiary as a result of non-repayment by the SMPC Holder of the next payment of the overdraft provided after
the expiry of the waiting period specified in the Agreement.