I have two questions:

We pay overdrafts on executive officers in compliance with 214.4(e) in that they are less then $1,000, not overdrawn for more than 5 business days and they are charged the same amount as anyone else. We do not report these to the Board. Are we required to report these to the Board by Regulation O?

We do the exact same thing for companies owned by any Director. We only pay less than $1,000, less than 5 days and charged the same fee. Are we required to report these to the board?

Our Board reporting of overdrafts was defined as: all overdrafts >$1,000 as of month end along with the date of the initial overdraft. As you have defined your procedures these overdrafts would not have been reported to the Board.

Unless your Board reporting of overdrafts includes overdrafts of less than $1,000 and you are excluding those made to executive officers and directors, I believe that you are OK.

Becky: The reg also says that the OD should be "inadvertent." I would err on the side of keeping the BOD more informed if the ODs don't look inadvertent. Better to hear about Reg O at a BOD mtg than at an exam exit mtg.

I would heed CT's advice. If you are paying more than 1 a quarter, maybe even one every 6 months, then I would question just how inadvertent these overdrafts are. IMHO if you are paying more than 2 per year you should set them up on an interest bearing overdraft line of credit.

You will be surprised how quick a EO or a director will "inadvertantly" overdraft when they know the bank's going to cover it for them.