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Co-Signer on Checking Account ODP Line of Credit

Answered by: 
Andy Zavoina

Question: 
If there is a checking account with a sole owner, and the customer wants to tie an overdraft protection line to the account; would it be a problem to have a co-signer for the line who is not also listed on the checking account?
Answer: 

I don't believe this would be a problem. The reverse would be if the signer had no liability but could overdraw the account and thereby access the line of credit. In this instance it would be similar to a parent guaranteeing the payment of a credit card debt of their child, but not having a card to access the line. There is no benefit to them for this, but they could still be obligated.

First published on BankersOnline.com 10/03/05

First published on 10/03/2005

Filed under: 
Compliance
Filed under compliance as: 
IT
Overdraft Protection

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