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    • Join Date: Jul 2005
    • Posts: 928
    #1

    overdrawn

    Hi,

    could you please tell me the meaning of "overdrawn bank account" in the following sentence:

    The customer shall hold the proceeds of any claim under the policy of insurance on trust for the company and not mix them with any other money or pay them into an overdrawn bank account.

    I know that you are overdrawn on your account if you withdraw more money from the account than it currently holds. But does it make sense in this context? Is there any other possible meaning?

    Thank you very much.

    Hanka


    • Join Date: Oct 2006
    • Posts: 19,434
    #2

    Re: overdrawn

    The customer shall hold the proceeds of any claim under the policy of insurance on trust for the company and not mix them with any other money or pay them into an overdrawn bank account.

    Your interpretation is correct. Moneys which come from an insurance claim made for a company must not be paid into such accounts, but be held in a separate account on trust for the company.

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