I am trying to determine if there are any compliance issues with the following scenario:
A customer wants to take out a personal line of credit - reported under his SSN - and tie it to "sweep" into and out of a business checking account. In other words, it would provide funding into the business checking account if the DDA falls below a threshhold amount and would repay when the DDA has the funds. The business DDA would be established using the business EIN. The business would also be able to access the personal line via Internet banking. The personal line borrower is the sole owner of the business.

I cannot think of any compliance issues, but can anyone else think of anything? Does anyone have something similar and what are your experiences?

Thanks!

Sounds to me this a business purpose LOC and therefore exempt from Reg. Z.