What right does a bank have regarding customer funds?

A bank has the right to be repaid overdrawn balances on demand because this falls within the terms of the banking agreement established between the bank and the customer. When a customer overdrafts their account, they are borrowing money from the bank, and as part of that transaction, the bank retains the right to request repayment of that debt at any time. This is crucial for maintaining the bank’s financial integrity and ensuring they can manage their own liquidity.

Moreover, this right is typically outlined in the terms and conditions provided to the customer when opening an account. Such agreements often include clauses that specify the bank's ability to call in overdrawn funds as needed, reinforcing the contractual nature of banking relationships.

The other options do not align with standard banking practices or regulations. Banks are generally required to disclose fees in advance and cannot charge fees without notice; using customer money improperly would violate banking regulations and the trust upon which banking is built; and refusing to issue bank statements contradicts transparency and customer service norms in the banking sector.