If a router lacks the resources to maintain a complete link state database, routing packets to it could result in a blackhole or routing loop. The overload bit prevents this undesirable behavior by indicating to the other routers that the afflicted router should not be used as a transit router. Packets destined for directly attached routes can still be routed to a router with the overload bit set, but all other routing paths reconverge around it.
Note
Enabling or disabling the overload bit feature does not modify the configuration of the command:
configure isis area area_name overload-bit on-startup [ off | {suppress [external | interlevel | all]} seconds]