Skip to content

What restrictions does Regulation O place on overdrafts?

Answered by: 

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 Holzknecht’s webinar
Most Common Regulation O Concerns

First published on 10/07/2018

Filed under: 

Search Topics