Skip to content

Insider overdrafts

Question: 
What restrictions does Regulation O place on overdrafts?
Answer: 

A bank may not pay a director’s or executive officer’s overdrafts, unless:
(a) The overdraft is pursuant to a written, preauthorized, interest-bearing plan, specifying a method of repayment, or
(b) The overdraft will be paid by a transfer of funds from another account at the bank, and such transfer was pre-authorized in writing.

The overdraft restrictions do not apply to:
• Payment of inadvertent overdrafts on an account in an aggregate amount of $1,000 or less, subject to certain conditions.
• Overdrafts of a director’s or executive officer’s related interests.

-----------------------------
Learn more about Jack and Kelly’s webinar Reg O – Insider Lending

First published on 02/26/2017

Filed under: 
Filed under operations 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