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Overnight Loan
Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority.)

In the New York MONEY MARKET a special category of very short-term credit accommodation for dealers in securities, primarily government securities dealers and those dealing in over-the-counter securities.  The overnight loan provides credit for such dealers by which to pay off any day loans, the latter incurred in order to pay for securities against delivery or to obtain release from pledge of securities in order to deliver.  Overnight loans, like day loans, are evidenced by specific notes for specific amounts; but they are fully secured by securities placed in possession of the bank lender, whereas day loans are secured by lien on securities in the process of being received or delivered.  Also, overnight loans are subject to maximum loan values and varying interest rates like other security loans, whereas day loans' rate is fixed and day loans are not subject to margin requirements.  


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