When may a bank pay an overdraft of $5,000 created by an executive officer of the bank?
When may a bank pay an overdraft of $5,000 created by an executive officer of the bank?
A bank may pay an overdraft of $5,000 created by an executive officer only when the officer has previously signed an overdraft protection credit agreement in an amount sufficient to cover the overdraft. This ensures that there is a formalized and authorized plan in place to manage such situations, aligning with regulatory guidelines and the bank's policies.
B is correct