6.2-877 - (Effective October 1, 2010) Overdrafts by bank officer or director. - Virginia Statutes

§ 6.2-877. (Effective October 1, 2010) Overdrafts by bank officer or director.

No bank shall pay an overdraft of an executive officer or director of thebank on an account at the bank unless the payment of funds is made inaccordance with (i) a written, preauthorized, interest-bearing extension ofcredit plan that specifies a method of repayment or (ii) a written,preauthorized transfer of funds from another account of the account holder atthe bank. This prohibition does not apply to the payment of inadvertentoverdrafts on an account in an aggregate amount of $1,000 or less if (a) theaccount is not overdrawn for more than five business days and (b) the memberbank charges the executive officer or director the same fee charged any othercustomer of the bank in similar circumstances.

(1981, c. 343, § 6.1-62.1; 2010, c. 794.)