Glossary(O)

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Official Check

A check drawn on a financial institution and signed by an authorized financial institution official. It can also be called a cashier's check.

Official Custodian

An official custodian is an officer, employee, or agent of a public unit having official custody of public funds and lawfully depositing the funds in an insured institution. In order to qualify as an official custodian, a person must have plenary (i.e. unqualified, absolute) authority, including control, over the funds. Control of public funds includes possession as well as the authority to establish accounts in insured depository institutions and to make deposits, withdrawals, and disbursements. For assistance in determining who the Official Custodian is for a given public unit, contact the legal counsel for the public unit.

Online Banking

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.

Open-End Credit

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. This credit can also be called a charge account or revolving credit.

Outstanding Check

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

Over Limit

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

Overages

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.

Overdraft

When the amount of money withdrawn from a checking or share draft account that is greater than the amount actually available in the account, the excess is known as an overdraft and the account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

Overdraw

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