Answer:
Regulation D prohibits corporations and partnerships (and certain others) from owning a Negotiable Order of Withdrawal (NOW) account. This rule has not changed. NOW accounts differ from demand deposit accounts in that the bank account agreement must specify that the bank has the right to require seven days advance notice before a withdrawal can be made. An interest bearing checking account has no advance notice of withdrawal and is available to all types of depositors.
First published on BankersOnline.com 3/19/12
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