We had a lender who wants to know if he can connect a commercial checking account to a HELOC for overdraft purposes. We're ok on the consumer side but we are not comfortable with this scenario. We thought if the business customer is a sole proprietor and it is their personal dwelling then perhaps, but not if it is a corporation, etc. But we are not sure under what "reg" or rules this would be prohibited? Has anyone else had this situation? Thank you.

I'm not aware of anything to prevent this, unless state laws would prohibit it, if you have all the proper authorizations from the owner of the HELOC and the corporate officers.

Is it advisable, not in my opinion. We do not allow it unless the HELOC was originally established for business purposes, but that is our policy.