OD Policy for Executive Officers/Directors-Reg O

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Question:

If a bank has an employee overdraft policy where each employee is allowed (3) overdrafts annually with no fee charged, does this policy also apply to Executive Officers and Directors? Or even if there is an employee plan, paying an OD item and not charging for an overdraft for an EO or Director would be a violation of Reg O?

Answer:

Regulation O won't permit you to waive OD fees for executive officers or for directors unless you waive them for customers generally under similar circumstances.

First published on BankersOnline.com 4/9/12