Forced loan. A forced loan originates more frequently in an overdraft than in any other way.
Illustration : A depositor in a bank draws a check for a sum larger than the balance or amount
standing to his credit in the bank. The bank pays the check in the expectation that the depositor
will on notification that he has overdrawn his account make good the discrepancy or, as it is
commonly called, overdraft. He is not able to do so and the bank is forced to make a loan to him of
the amount of the shortage in order to cover the overdraft— that is, in order to bring his credit up
to a sum that equals the amount of the check.