by Randy Carey: No, there is no law or regulation that says you can or can't do this. There are only laws that say if you allow this and it was not authorized by the business, the bank will suffer any losses incurred.
by Ken Golliher: If the business is an entity; e.g. corporation, partnership, LLC, etc. you just gave the wrong "person" the money. As it should be, that's pretty much indefensible.