Opinion ID: 507225
Heading Depth: 2
Heading Rank: 2

Heading: Societe Generale's Procedure Regarding Colombian Coffee

Text: Overdrafts 9 Some Societe Generale accounts have special provisions that allow the accountholders to write checks for which there are insufficient funds. If such a check is presented to the bank, the bank will automatically honor it despite the overdraft it creates in the account. Colombian Coffee, however, did not have any such understanding with Societe Generale regarding its overdrafts. Instead, because Societe Generale was aware of Colombian Coffee's financial difficulties, it monitored Colombian Coffee's account quite closely. Whenever Societe Generale became aware of an overnight overdraft, it first called Colombian Coffee to make sure that they were depositing sufficient funds to cover the check. Colombian Coffee would tell Societe Generale how much money was on the way and which bank was sending the money. Societe Generale would then contact the bank, which would confirm the information by telex or by telephone. It was only after receiving a confirmation from the bank in question that Societe Generale would honor the check.