Final answer:
A stale check is a check presented for payment six months after its issuance date. Checks are used for payment and the funds are transferred from the payer's bank account to the recipient's upon deposit. An overdraft occurs when there are insufficient funds and the bank account balance goes negative.
Step-by-step explanation:
A stale check is a check that is presented for payment more than six months after its date. In order to use a check for payment for goods and services, you write the check to the recipient, who then deposits it into their bank account. The store or entity where the payment is made gets the money when the check is processed and the funds are transferred from the payer's bank account to the recipient's account.
If the payer's bank account does not have sufficient funds to cover the check amount, this situation results in an overdraft, which is when the account balance goes below zero because the bank covers the payment. This typically incurs additional fees charged by the bank for providing the overdraft facility or service.