Which is a right of a bank regarding overdrawn balances?

A bank has the right to demand repayment on demand regarding overdrawn balances because it holds a legal claim to the funds that have been disbursed beyond what the account holder has deposited. When a customer overdraws their account, they are essentially borrowing money from the bank, and this arrangement typically comes with the expectation that the borrowed amount will be repaid promptly.

This demand for repayment is grounded in the contractual terms of the bank's service agreement with the customer. Such agreements outline the bank's rights and responsibilities, including how they handle overdrafts. The bank is not obligated to forgive debts, ignore charges, or offer discounts on repayments unless specifically stated in the contract or as part of a promotional offer. These aspects are not standard rights associated with managing overdrawn accounts. Therefore, the bank's right to demand repayment on demand is established as a fundamental component of the banking relationship.