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Setoff against Loan for Overdraft

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Question: 
If a customer has a large deposited item returned on their checking account, can we legally advance on their HELOC if there is an available balance, rather than have an overdrawn account?
Answer: 

Totally based on your legal agreements for the accounts. If the HELOC is not normally used for overdraft protection, you need to talk to your legal counsel.

First published on 02/12/2023

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