Skip to content
GeoDataVision
Thread Options
#1894612 - 02/06/14 10:02 PM Reg. O Violation? Director Overdraft
Cale_N_Oats Offline
Platinum Poster
Cale_N_Oats
Joined: Aug 2008
Posts: 742
Southern Illinois
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.

Return to Top
Lending Compliance
#1894620 - 02/06/14 10:16 PM Re: Reg. O Violation? Director Overdraft Cale_N_Oats
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,281
It is a violation because the line was maxed out. The OD should not have been allowed.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1894622 - 02/06/14 10:18 PM Re: Reg. O Violation? Director Overdraft Cale_N_Oats
Cale_N_Oats Offline
Platinum Poster
Cale_N_Oats
Joined: Aug 2008
Posts: 742
Southern Illinois
Thanks Kathleen!
_________________________
Serenity Now!!!

Return to Top

Moderator:  Andy_Z