Im a little confused as to whether or not this particular situation would be considered a Reg. O violation or not.

So, a director overdraws his account for more than $1000. He does have an Overdraft Line of Credit agreement signed with the bank. The LOC was maxed out at the time the overdraft took place so the account was overdrawn for 2 days. The bank charged him an OD fee. The director made a deposit to get the balance back to positive. Is this a Reg. O violation since the bank did have an agreement in place with the director to pay overdrafts with this LOC (eventhough it was maxed out)?

I think it is still becasue the LOC didnt take care of the OD on the same day and the account was overdrawn in excess of $1000 for 2 days.

It is a violation because the line was maxed out. The OD should not have been allowed.

Thanks Kathleen!