We have a Loan Officer asking for an exception to grant overdraft protrection to an account for a minor. The parent does sign on the account.

I've checked Civ. Code 1556 - Contracts: Minors do not have the capacity to contract. A minor may make a contract in the same manner as an adult, subject to the power of disaffirmance. Probate code 6700 and 6710 (not the case here). A minor cannot give a delegation of power, make a contrct relating to real property, or make a contract relating to personal property not in the immediate possession or control of the minor. Probate Code 6701.

In this case, we have a member of management stating that the bank can make the exception with the understanding if the parent dies the minor has no obligation to pay the balance of the overdraft protection account.

Is there a cite somewhere that states the legitimacy of something like this? Or, is this a case by case situation banks can make this kind of decision w/o violations or legal reprocussions.