Glossary - O

A check drawn on a financial institution and signed by an authorized financial institution official. (Also known as a cashier's check.)

A service that allows an account holder to obtain account information and manage certain banking transactions through a personal computer, or other electronic device, via the financial institution's Internet web site. (This is also known as Internet, electronic, or home banking.)

A credit agreement (typically a credit card) that allows a member to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or revolving credit.)

A check written by a member that has not yet been presented for payment to the financial institution.

The difference between the lowest available price and any higher price that the homebuyer agrees to pay for a loan. Loan officers and brokers are often allowed to keep some or all of this difference as extra compensation.

When the amount of money withdrawn from a checking or share draft account that is greater than the amount actually available in the account, the excess is known as an overdraft and the account is said to be overdrawn.

To write a check for an amount that exceeds the amount on deposit in the account.

An open-end credit account in which the assigned dollar limit has been exceeded.