Can a check drawn against a HELOC be returned if the borrower has exceeded their line? Would that be a legitimate reason for return? Thanks!

I haven't worked with these, but it would have to be. Otherwise you'd have no lending limit imposed if you had to pay the check.

It may also hinge on the HELOC agreement, and the discretion the lender has left itself to honor checks exceeding the limit. Some lenders will allow a one-time overdraw, or something similar.

I'm the original Anon. Checks on a HELOC are a little different than on a checking account. The usual reasons for return - insufficient funds, fraud, signature, etc. - exceeding the credit line is not one of the normal reasons for return, so I want to make sure that if we needed to return it for that reason, it would be legal under UCC, Reg J. I suppose it could be termed insufficient funds...??? We're working on a HELOC product-trying to assess the risks... Thanks!

We use the term "insufficient funds" for our HELOC product.