The Collaborative International Dictionary of English v.0.48:

Overdraw \O`ver*draw"\, v. t. [imp. Overdrew; p. p.
   Overdrawn; p. pr. & vb. n. Overdrawing.]
   1. To exaggerate; to overdo.
      [1913 Webster]

   2. (Banking) To make drafts upon or against, in excess of the
      proper amount or limit; to draw more than the balance in
      one's account.
      [1913 Webster +PJC]

WordNet (r) 3.0 (2006):

overdraw
    v 1: draw more money from than is available; "She overdrew her
         account"
    2: to enlarge beyond bounds or the truth; "tended to romanticize
       and exaggerate this `gracious Old South' imagery" [syn:
       overstate, exaggerate, overdraw, hyperbolize,
       hyperbolise, magnify, amplify] [ant: downplay,
       minimise, minimize, understate]