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#1810364 - 05/02/13 06:13 PM OD Protection for comercial accounts
INOH Offline
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Joined: Jul 2012
Posts: 345
Northeast
We currently offer an OD Privileged product for consumers. We are thinking about offering to our commercial accounts.

Are commercial accounts allowed to have this OD Product? what all would we need to have in place to be in compliance?

Thanks,
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Operations Compliance
#1810369 - 05/02/13 06:17 PM Re: OD Protection for comercial accounts INOH
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
A borrowing resolution if you ever hope to collect.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1810372 - 05/02/13 06:22 PM Re: OD Protection for comercial accounts INOH
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
There have been prior threads on this, but I cannot come up with search terms that work. In essence: An overdraft is a loan. Business entities; e.g. corporations, partnerships, LLCs, etc. borrow money by adopting resolutions authorizing named individuals to borrow money. A person authorized to sign on an account is not necessarily empowered to borrow money.

This would require a great deal of thought and some significant ingenuity. Even then, it might not be a great idea...
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#1810386 - 05/02/13 06:38 PM Re: OD Protection for comercial accounts INOH
INOH Offline
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Joined: Jul 2012
Posts: 345
Northeast
Thank you guys!
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Just trying to swim in the compliance world.

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#1810505 - 05/02/13 09:07 PM Re: OD Protection for comercial accounts INOH
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
If an entity wants their ODs covered and the bank would like to eventually collect the money, then they should be executing some sort of overdraft line of credit agreement.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1810746 - 05/03/13 03:37 PM Re: OD Protection for comercial accounts INOH
INOH Offline
Gold Star
Joined: Jul 2012
Posts: 345
Northeast
Thanks rlcarey!
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