With the new Dodd Frank change allowing banks to pay interest on business accounts, does anyone know if there will be changes to Reg D regarding eligibility for NOW accounts? If not, it seems that we would not be able to offer NOW accounts to Commercial customers.

As per John Burnett is another thread:

"I'm guessing that the reference is to all the hubbub over DDA with interest accounts. By the way, even with the legal ability to pay interest on DDAs on or after 7/21/11, there isn't any change in the ownership requirements for NOW or ATS accounts, and the laws permitting NOW and ATS accounts have not been repealed or amended. What will happen, I predict, is that the need to have a separate legal "thing" called a NOW account will go away (since you will be able to get interest on a checking account without going the NOW route), and some banks will simply eliminate the product."

I guess that will depend on whether or not the banks want to pay the extra reserves.

Whether it's a NOW account or a DDA account, with or without interest, it's a transaction account and subject to the same reserve requirement, isn't it?

Is a sole proprietorship eligible to have a NOW account under the current rules?

Yes

John - you are correct - not quite sure what I was thinking when I posted that......