OVERDRAFT POLICY. (1) Within thirty (30) days, the Board shall prepare and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection a written policy concerning the extension of overdrafts that shall include, at a minimum: (a) Conditions and circumstances under which overdrafts will be allowed, taking into consideration the requirements of 12 U.S.C. § 375b; (b) Conditions and circumstances under which overdrafts will be permitted for Insiders, including their Related Interests (as these terms are defined in 12 C.F.R. Part 215); (c) Charges that will be levied against depositors using overdrafts; (d) Conditions and circumstances under which overdrafts will be charged off; (e) Criteria for converting an overdraft to a term loan; and (f) Monthly reports to and review of all overdrafts by the Board and management to ensure compliance with the Bank’s stated policy and with applicable laws and regulations. These monthly reports shall include all overdrafts of Insiders and their Related Interests and those customers with both the most frequent and largest overdrafts. (2) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the policy required by this Article.
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Sources: Banking Agreement, Banking Compliance Agreement (Chino Commercial Bancorp)