No, we are not aware of any laws or regulations that would require a bank to notify a business customer’s owner or authorized signer regarding overdrafts. However, we recommend reviewing your business account agreements and signature cards, or other documents establishing an authorized signer’s authority, which might require your bank to provide certain overdraft information or notices.

Also, while it may be a good business practice to share overdraft information with a business customer’s owners (particularly if they are becoming a problem), we recommend caution before sharing such account information with a non-owner, such as an authorized signer. Illinois’ financial privacy protections, which apply to both business and consumer customers, would prohibit your bank from disclosing such information to a non-owner unless the customer has agreed to it.

For resources related to our guidance, please see:

• Illinois Banking Act, 205 ILCS 5/48.1(c) (“Except as otherwise provided by this Act, a bank may not disclose to any person, except to the customer or his duly authorized agent, any financial records or financial information obtained from financial records relating to that customer of that bank unless: (1) the customer has authorized disclosure to the person”)

• IDFPR Interpretive Letter 01-01 (March 9, 2001) (“Section 48.1 only uses the term ‘customer’ but does not define the term for purposes of the section. However, the plain language is clear. All customers (individuals, corporations and other entities) are protected whether they receive a financial product or service from a state bank or seek to obtain such product or service for personal or business purposes.”)