Question of the Week

  • QUESTION: Does Regulation O address overdrafts by an executive officer, director of executive officer of an affiliate?


    No member bank may pay an overdraft of an executive officer or director of the bank or executive officer or director of its affiliates* on an account at the bank, unless the payment of funds is made in accordance with:

    1. A written, preauthorized, interest-bearing extension of credit plan that specifies a method of repayment; or
    2. A written, preauthorized transfer of funds from another account of the account holder at the bank.

     The prohibition of this section does not apply to payment of inadvertent overdrafts on an account in an aggregate amount of $1,000 or less, provided:

    1. The account is not overdrawn for more than 5 business days; and
    2. The member bank charges the executive officer or director the same fee charged any other customer of the bank in similar circumstances.

     * This prohibition does not apply to the payment by a member bank of an overdraft of a principal shareholder of the member bank, unless the principal shareholder is also an executive officer or director. This prohibition also does not apply to the payment by a member bank of an overdraft of a related interest of an executive officer, director, or principal shareholder of the member bank or executive officer, director, or principal shareholder of its affiliates. 

    Reference: 12 CFR 215.4(e).

Question of the Week Archive

  • QUESTION:When are the mortgage provisions of S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act effective?

  • QUESTION: Should checks deposited through RDC, have a physical restrictive endorsement with the new Reg CC amendments effective July 1, 2018?

  • QUESTION: A loan was made to a person who is part of a trust. The person is a beneficiary and is relying on the trust income. How is income from a trust reported under HMDA?

  • QUESTION: When working on red flags program for BSA/AML we have come across several acronyms that aren’t explained. What is a PEP?

  • QUESTION: Is multiple transactions the same as aggregate transactions?

  • QUESTION: Is it permissible for teller or other customer service representatives to promote retail non-deposit investment products while handling regular banking activities?

  • QUESTION: A review of our ID theft red flag program noted it only included accounts for personal family or household use.Should business accounts be included?

  • QUESTION: Is a marijuana related business eligible to be an exempt person under BSA?

  • QUESTION: Does the bank bribery act require the bank to have a policy?

  • QUESTION: Is there a notice that must be provided on a website in reference to information collection for children as part of COPPA?

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