Skip to content
GeoDataVision
Thread Options
#828228 - 10/03/07 05:46 PM Regulation O
JoAnne Offline
Platinum Poster
Joined: Feb 2001
Posts: 795
Michigan
For Reg O purposes, are accounts in the insiders name with ownership as custodian, trustee, authorized signer subject to the overdraft provisions of Reg O?

For example a director is "trustee" on a number of retail DDA accounts in the name of trusts - his own trust, parents trust, sibling trusts. Should any of these accounts be reviewed for overdrafts for Reg O pubposes?
_________________________
Opinions posted are not necessarily those of my employer.

Return to Top
Lending Compliance
#828262 - 10/03/07 06:29 PM Re: Regulation O JoAnne
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,893
Galveston, TX
If they are a beneficiary - I believe so. If not a beneficiary, the trust may still be a related interest, but that would not impact the overdraft provisions.

Letting a trust account go into overdraft is usually a breach of fiduciary responsibilities, unless under specific circumstances.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#924740 - 03/18/08 02:03 PM Re: Regulation O rlcarey
swiggles Offline
Power Poster
swiggles
Joined: Aug 2001
Posts: 7,333
Can I dredge this one back up for further discussion?

If an executive officer is an "authorized signer" on an account, would Reg O overdraft rules apply? By "authorized signer," I mean a convenience signer. In other words, the executive officer is not an owner of the account. He or she is allowed to authorize transactions on the account as a convenience to the owner....which means that he or she can legally do just about anything in connection with the account. But the owner can terminate the arrangement at any time and the arrangement automatically termininates upon death.
_________________________
The more you sweat in training, the less you bleed in battle.......

Return to Top
#924747 - 03/18/08 02:09 PM Re: Regulation O swiggles
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
No. Related interests do not apply to this section.

3\ This prohibition does not apply to the payment by a member bank of an overdraft of a principal shareholder of the member bank, unless the principal shareholder is also an executive officer or director. This prohibition also does not apply to the payment by a member bank of an overdraft of a related interest of an executive officer, director, or principal shareholder of the member bank or executive officer, director, or principal shareholder of its affiliates.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#924749 - 03/18/08 02:11 PM Re: Regulation O RR Joker
swiggles Offline
Power Poster
swiggles
Joined: Aug 2001
Posts: 7,333
Originally Posted By: RR joker
No. Related interests do not apply to this section.

3\ This prohibition does not apply to the payment by a member bank of an overdraft of a principal shareholder of the member bank, unless the principal shareholder is also an executive officer or director. This prohibition also does not apply to the payment by a member bank of an overdraft of a related interest of an executive officer, director, or principal shareholder of the member bank or executive officer, director, or principal shareholder of its affiliates.


Pardon my ignorance, but you're quoting from where?
_________________________
The more you sweat in training, the less you bleed in battle.......

Return to Top
#924777 - 03/18/08 02:30 PM Re: Regulation O swiggles
swiggles Offline
Power Poster
swiggles
Joined: Aug 2001
Posts: 7,333
Nevermind..........I see that it's a footnote. Thanx much. I now feel dumb.
_________________________
The more you sweat in training, the less you bleed in battle.......

Return to Top
#924925 - 03/18/08 04:25 PM Re: Regulation O swiggles
swiggles Offline
Power Poster
swiggles
Joined: Aug 2001
Posts: 7,333
Soooo.......if an OD is paid on a "related interest" as in my example above, it's not a violation of Reg O because the overdraft rules do not apply to related interests. But must the OD be counted with extensions of credit made to the executive officer?
_________________________
The more you sweat in training, the less you bleed in battle.......

Return to Top
#2179268 - 05/23/18 01:36 PM Re: Regulation O JoAnne
Compliance NABW Offline
Diamond Poster
Joined: Oct 2015
Posts: 1,636
Hey Swiggles . . . years later, but "Yes," my understanding is it would still need to be dealt with from the extension of credit standpoint.

Return to Top

Moderator:  Andy_Z