Skip to content

Documentation: Increase Overdraft Line of Credit

Answered by: 

Question: 
If we increase an overdraft line of credit (unsecured) limit, what documentation do we need? Does the customer need to sign anything? Do we have to do a whole new loan or just document it in the file?
Answer: 

An overdraft line of credit is a formal extension of open-end credit that happens to be linked to a transaction account. Whether you need a new agreement or can increase the line by informing the customer (as with a credit card line increase) is something that state law could affect. I recommend you consult with local legal counsel.

First published on 06/03/2018

Filed under: 
Filed under lending as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics