When may a bank pay an overdraft of $5,000 created by an executive officer of the bank?

When the officer is at the level of a vice president or lower.
When the officer has previously signed an overdraft protection credit agreement in an amount sufficient to cover the overdraft.
When the officer has enough funds in another account to cover the overdraft.
When the bank pays the overdrafts for other good customers in the ordinary course of business.

Answer(s): B

How may a bank limit the definition of executive officer?

By strictly defining, in writing, the duties and responsibilities of the officers to be excluded from the definition
By passing a board of directors resolution setting forth the bank's definition of an executive officer
By requiring that those officers to be excluded from the definition not attend loan committee meetings or loan review meetings
By limiting the amount of confidential information given to those officers to be excluded from the definition

Answer(s): B

How may a bank limit the definition of executive officer?

By strictly defining, in writing, the duties and responsibilities of the officers to be excluded from the definition
By passing a board of directors resolution setting forth the bank's definition of an executive officer
By requiring that those officers to be excluded from the definition not attend loan committee meetings or loan review meetings
By limiting the amount of confidential information given to those officers to be excluded from the definition

Answer(s): B

How may a bank limit the definition of executive officer?

By strictly defining, in writing, the duties and responsibilities of the officers to be excluded from the definition
By passing a board of directors resolution setting forth the bank's definition of an executive officer
By requiring that those officers to be excluded from the definition not attend loan committee meetings or loan review meetings
By limiting the amount of confidential information given to those officers to be excluded from the definition

Answer(s): B

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