Question

In a scenario where an account holder overdraws their current account without an express, written agreement, and the bank chooses to honor the cheque, what legal relationship or status is created according to judicial precedent?

A The transaction is considered legally void under banking regulations.
B An implied agreement for a grant of an overdraft or loan facility is established.
C The customer is automatically penalized for a criminal offense.
D The account is converted into a non-fund-based letter of credit.
E The bank forfeits its right to recover the overdrawn amount.
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