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#1981939 - 12/09/14 07:56 PM Reg O and Authorized Signers
HubbaBubba Offline
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Joined: Sep 2002
Posts: 311
If an insider is an authorized signer on a commercial account (he is NOT the owner of the entity), and that account overdraws over $100,000, is this a Reg O violation?

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#1982047 - 12/10/14 12:52 PM Re: Reg O and Authorized Signers HubbaBubba
HubbaBubba Offline
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Joined: Sep 2002
Posts: 311
Anyone??

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#1982048 - 12/10/14 12:53 PM Re: Reg O and Authorized Signers HubbaBubba
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
No, even ODs on related entities are not covered by Reg O, but you need to understand why a director is an authorized signer and does he exercise control over that entity.

ODs can trigger approval requirements for credit if the entity must be combined. Additionally, poor management of related entities is an issue.
Last edited by Kathleen B; 12/10/14 12:55 PM.
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