NCP PREP1
BANK AS DEFINED UNDER UCC ARTICLE 4
A PERSON ENGAGED IN THE BUSINESS OF BANKING, INCLUDING A SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, CREDIT UNION, OR TRUST COMPANY
THE FIRST BANK TO TAKE AN ITEM EVEN THOUGH IT IS ALSO THE PAYOR BANK, UNLESS THE ITEM IS PRESENTED FOR IMMEDIATE PAYMENT OVER THE COUNTER
A BANK THAT IS THE DRAWEE OF A DRAFT
A BANK TO WHICH AN ITEM IS TRANSFERRED IN COURSE OF COLLECTION EXCEPT THE DEPOSITARY OR PAYOR BANK
DEPOSITARY BANK AS DEFINED UNDER UCC ARTICLE 4
PARTY OR PARTIES DUE PAYMENT INDICATED ON A CHECK
A BANK PRESENTING AN ITEM EXCEPT A PAYOR BANK
THE INSTITUTION AT WHICH A CHECK IS DEPOSITED (AKA DEPOSITARY BANK OR DEPOSITORY BANK)
THE FIRST BANK TO TAKE AN ITEM EVEN THOUGH IT IS ALSO THE PAYOR BANK, UNLESS THE ITEM IS PRESENTED FOR IMMEDIATE PAYMENT OVER THE COUNTER
PAYOR BANK AS DEFINED UNDER UCC ARTICLE 4
PARTY OR PARTIES DUE PAYMENT INDICATED ON A CHECK
THE FINANCIAL INSTITUION WHICH HAS THE DRAWER’S CHECKING ACCOUNT; THEIR ROUTING NUMBER IS ENCODED ON THE MICR LINE OF THE CHECK (AKA PAYOR BANK OR DRAWEE)
A BANK THAT IS THE DRAWEE OF A DRAFT
A PERSON ENGAGED IN THE BUSINESS OF BANKING, INCLUDING A SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, CREDIT UNION, OR TRUST COMPANY
INTERMEDIARY BANK AS DEFINED UNDER UCC ARTICLE 4
A BANK TO WHICH AN ITEM IS TRANSFERRED IN COURSE OF COLLECTION EXCEPT THE DEPOSITARY OR PAYOR BANK
A BANK HANDLING AN ITEM FOR COLLECTION EXCEPT THE PAYOR BANK
A BANK PRESENTING AN ITEM EXCEPT A PAYOR BANK
PARTY OR PARTIES DUE PAYMENT INDICATED ON A CHECK
COLLECTING BANK AS DEFINED UNDER UCC ARTICLE 4
THE FIRST BANK TO TAKE AN ITEM EVEN THOUGH IT IS ALSO THE PAYOR BANK, UNLESS THE ITEM IS PRESENTED FOR IMMEDIATE PAYMENT OVER THE COUNTER
PRIVATE DEPOSITORY INSTITUION, BANKER’S BANK OR FEDERAL RESERVE BANK PROVIDING CLEARING OR SETTLEMENT SERVICES ON BEHALF OF A FINANCIAL INSTITUTION. IN THIS TRAINING, A CORRESPONDENT BANK IS GENERALLY SHOWN AS AN INTERMEDIARY IN THE FORWARD COLLECTION PROCESS. EX: COULD BE CORP ONE FCU
A BANK PRESENTING AN ITEM EXCEPT A PAYOR BANK
A BANK HANDLING AN ITEM FOR COLLECTION EXCEPT THE PAYOR BANK
PRESENTING BANK AS DEFINED UNDER UCC ARTICLE 4
THE FINANCIAL INSTITUION WHICH HAS THE DRAWER’S CHECKING ACCOUNT; THEIR ROUTING NUMBER IS ENCODED ON THE MICR LINE OF THE CHECK (AKA PAYOR BANK OR DRAWEE)
THE BANK THAT CREATES AN IMAGE OF THE ORIGINAL CHECK
A BANK PRESENTING AN ITEM EXCEPT A PAYOR BANK
THE INSTITUTION AT WHICH A CHECK IS DEPOSITED
WHAT IS THE DRAWER?
PARTY OR PARTIES DUE PAYMENT INDICATED ON A CHECK
PERSON OBLIGATED TO PAY ON A CHECK
THE INSTITUTION AT WHICH A CHECK IS DEPOSITED
A BANK HANDLING AN ITEM FOR COLLECTION EXCEPT THE PAYOR BANK
WHAT IS THE PAYEE?
PARTY OR PARTIES DUE PAYMENT INDICATED ON A CHECK
A BANK THAT IS THE DRAWEE OF A DRAFT
PERSON OBLIGATED TO PAY ON A CHECK
THE INSTITUTION AT WHICH A CHECK IS DEPOSITED
WHAT IS THE BANK OF FIRST DEPOSIT (BOFD)?
A BANK PRESENTING AN ITEM EXCEPT A PAYOR BANK
A BANK THAT IS THE DRAWEE OF A DRAFT
THE INSTITUTION AT WHICH A CHECK IS DEPOSITED
A PERSON ENGAGED IN THE BUSINESS OF BANKING, INCLUDING A SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, CREDIT UNION, OR TRUST COMPANY
WHAT IS THE CORRESPONDENT BANK?
A BANK THAT IS THE DRAWEE OF A DRAFT
THE FIRST BANK TO TAKE AN ITEM EVEN THOUGH IT IS ALSO THE PAYOR BANK, UNLESS THE ITEM IS PRESENTED FOR IMMEDIATE PAYMENT OVER THE COUNTER
THE FINANCIAL INSTITUION WHICH HAS THE DRAWER’S CHECKING ACCOUNT; THEIR ROUTING NUMBER IS ENCODED ON THE MICR LINE OF THE CHECK (AKA PAYOR BANK OR DRAWEE)
PRIVATE DEPOSITORY INSTITUION, BANKER’S BANK OR FEDERAL RESERVE BANK PROVIDING CLEARING OR SETTLEMENT SERVICES ON BEHALF OF A FINANCIAL INSTITUTION. IN THIS TRAINING, A CORRESPONDENT BANK IS GENERALLY SHOWN AS AN INTERMEDIARY IN THE FORWARD COLLECTION PROCESS. EX: COULD BE CORP ONE FCU
WHAT IS THE PAYING BANK?
A PERSON ENGAGED IN THE BUSINESS OF BANKING, INCLUDING A SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, CREDIT UNION, OR TRUST COMPANY
THE FIRST BANK TO TAKE AN ITEM EVEN THOUGH IT IS ALSO THE PAYOR BANK, UNLESS THE ITEM IS PRESENTED FOR IMMEDIATE PAYMENT OVER THE COUNTER
THE FINANCIAL INSTITUION WHICH HAS THE DRAWER’S CHECKING ACCOUNT; THEIR ROUTING NUMBER IS ENCODED ON THE MICR LINE OF THE CHECK
THE BANK THAT CREATES AN IMAGE OF THE ORIGINAL CHECK
IS IT POSSIBLE FOR THE BOFD AND PAYING BANK TO BE THE SAME INSTITUTION?
YES, IF BOTH THE MAKER/DRAWER AND PAYEE HAVE THE SAME INSTITUTION AND THE PAYEE DEPOSITS THE CHECK INTO THEIR ACCOUNT AT THAT INSTITUTION. (ON-US ITEMS)
NO, THEY MUST BE ONE OR THE OTHER
YES, IF THEY ARE THE PARTY OR PARTIES DUE PAYMENT INDICATED ON A CHECK
NO, THEY HAVE TO BE A BANK PRESENTING AN ITEM EXCEPT A PAYOR BANK
WHAT IS THE TRUNCATING BANK?
THE BANK WHERE THE CHECK WAS DEPOSITED VIA RDC
THE BANK THAT CREATES AN IMAGE OF THE ORIGINAL CHECK
THE BANK THAT PROVIDES AN INDEMNITY UNDER REGULATION CC WITH RESPECT TO A SUBSTITUTE CHECK, RDC AND ELECTRONICALLY CREATED ITEMS (ECI’s). THE INDEMNIFYING BANK INDEMNIFIES THE DEPOSITARY BANK THAT TAKES THE PHYSICAL CHECK DEPOSIT.
A BANK PRESENTING AN ITEM EXCEPT A PAYOR BANK
WHAT IS THE RECONVERTING BANK?
THE BANK THAT CREATES AN IMAGE OF THE ORIGINAL CHECK
THE BANK WHERE THE CHECK WAS DEPOSITED VIA RDC
A BANK PRESENTING AN ITEM EXCEPT A PAYOR BANK
THE BANK THAT PRODUCES THE SUBSTITUTE CHECK OR IMAGE REPLACEMENT DOCUMENT (IRD)
WHAT IS THE REMOTE DEPOSIT CAPTURE (RDC) BANK?
THE BANK WHERE THE CHECK WAS DEPOSITED VIA RDC
THE BANK THAT PROVIDES AN INDEMNITY UNDER REGULATION CC WITH RESPECT TO A SUBSTITUTE CHECK, RDC AND ELECTRONICALLY CREATED ITEMS (ECI’s). THE INDEMNIFYING BANK INDEMNIFIES THE DEPOSITARY BANK THAT TAKES THE PHYSICAL CHECK DEPOSIT.
THE FINANCIAL INSTITUION WHICH HAS THE DRAWER’S CHECKING ACCOUNT; THEIR ROUTING NUMBER IS ENCODED ON THE MICR LINE OF THE CHECK
THE BANK THAT CREATES AN IMAGE OF THE ORIGINAL CHECK
WHAT IS THE INDEMNIFYING BANK?
SECURITY OR PROTECTION AGAINST A LOSS OR OTHER FINANCIAL BURDEN (THE BANK PROVIDES AN INDEMNITY WITH RESPECT TO A SUBSTITUTE CHECK, RDC, OR ECI)
THE BANK THAT PRODUCES THE SUBSTITUTE CHECK OR IMAGE REPLACEMENT DOCUMENT (IRD)
THE BANK THAT PROVIDES AN INDEMNITY UNDER REGULATION CC WITH RESPECT TO A SUBSTITUTE CHECK, RDC AND ELECTRONICALLY CREATED ITEMS (ECI’s). THE INDEMNIFYING BANK INDEMNIFIES THE DEPOSITARY BANK THAT TAKES THE PHYSICAL CHECK DEPOSIT.
THE FINANCIAL INSTITUION WHICH HAS THE DRAWER’S CHECKING ACCOUNT; THEIR ROUTING NUMBER IS ENCODED ON THE MICR LINE OF THE CHECK
WHAT DOES INDEMNITY MEAN?
THE BANK THAT PROVIDES AN INDEMNITY UNDER REGULATION CC WITH RESPECT TO A SUBSTITUTE CHECK, RDC AND ELECTRONICALLY CREATED ITEMS (ECI’s). THE INDEMNIFYING BANK INDEMNIFIES THE DEPOSITARY BANK THAT TAKES THE PHYSICAL CHECK DEPOSIT.
A SITUATION INVOLVING EXPOSURE TO DANGER
INSURED COMMERCIAL BANKS, INSURED CREDIT UNIONS, MUTUAL SAVINGS BANKS, SAVINGS AND LOAN ASSOCIATIONS, AND AGENCIES OR BRANCHES OF A FOREIGN BANK AS DEFINED IN THE INTERNATIONAL BANKING ACT.
SECURITY OR PROTECTION AGAINST A LOSS OR OTHER FINANCIAL BURDEN (THE BANK PROVIDES AN INDEMNITY WITH RESPECT TO A SUBSTITUTE CHECK, RDC, OR ECI)
DOES DEPOSITORY INSTITUTION (VERBIAGE USED IN EXPEDITED FUNDS AVAILABILITY ACT) AND BANK (VERBIAGE USED WITHIN REG CC) MEAN THE SAME THING?
YES
NO
SOMETIMES
YES AND NO
SINCE DEPOSITORY INSTITUTION (VERBIAGE USED IN EXPEDITED FUNDS AVAILABILITY ACT) AND BANK (VERBIAGE USED WITHIN REG CC) MEAN THE SAME THING, WHAT TYPES OF INSTITUTIONS ARE INCLUDED IN THESE DEFINITIONS?
THE BANK PROVIDES AN INDEMNITY WITH RESPECT TO A SUBSTITUTE CHECK, RDC, OR ECI
COMMERCIAL BANKS, CREDIT UNIONS, MUTUAL SAVINGS BANKS, SAVINGS AND LOAN ASSOCIATIONS, AND AGENCIES OR BRANCHES OF A FOREIGN BANK AS DEFINED IN THE INTERNATIONAL BANKING ACT.
INSURED COMMERCIAL BANKS, INSURED CREDIT UNIONS, MUTUAL SAVINGS BANKS, SAVINGS AND LOAN ASSOCIATIONS
INSURED COMMERCIAL BANKS, INSURED CREDIT UNIONS, MUTUAL SAVINGS BANKS, SAVINGS AND LOAN ASSOCIATIONS, AND AGENCIES OR BRANCHES OF A FOREIGN BANK AS DEFINED IN THE INTERNATIONAL BANKING ACT.
WHICH REGULATIONS OR RULES USE THE TERM DEPOSITARY?
REGULATION J (SUPBART A)
UCC 3
FEDERAL RESERVE RULES AND REGULATIONS
REG CC & ECCO RULES
WHAT IS THE DEFINITION OF DEPOSITARY BANK ACCORDING TO REG CC?
A DEPOSITARY BANK IS THE FIRST DEPOSITORY INSTITUTION (AS DEFINED IN SECTION 19(b) OF THE FEDERAL RESERVE ACT) TO TAKE AN ITEM FOR COLLECTION OTHER THAN THE PAYING BANK.
A DEPOSITARY BANK IS THE FIRST BANK A CHECK IS TRANSFERRED TO (IE THE BOFD)
PRIVATE DEPOSITARY INSTITUION, BANKER’S BANK OR FEDERAL RESERVE BANK PROVIDING CLEARING OR SETTLEMENT SERVICES ON BEHALF OF A FINANCIAL INSTITUTION.
A PERSON ENGAGED IN THE BUSINESS OF BANKING, INCLUDING A SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, CREDIT UNION, OR TRUST COMPANY
WHAT IS THE DEFINITION OF DEPOSITARY BANK ACCORDING TO THE ECCO RULES?
A DEPOSITARY BANK IS THE FIRST DEPOSITORY INSTITUTION (AS DEFINED IN SECTION 19(b) OF THE FEDERAL RESERVE ACT) TO TAKE AN ITEM FOR COLLECTION OTHER THAN THE PAYING BANK.
A DEPOSITARY BANK IS THE FIRST BANK A CHECK IS TRANSFERRED TO (IE THE BOFD)
A PERSON ENGAGED IN THE BUSINESS OF BANKING, INCLUDING A SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, CREDIT UNION, OR TRUST COMPANY
PRIVATE DEPOSITARY INSTITUION, BANKER’S BANK OR FEDERAL RESERVE BANK PROVIDING CLEARING OR SETTLEMENT SERVICES ON BEHALF OF A FINANCIAL INSTITUTION.
WHAT IS THE DEFINITION OF A DEPOSITORY BANK ACCORDING TO THE FEDERAL RESERVE ACT?
A DEPOSITORY BANK IS THE FIRST DEPOSITORY INSTITUTION (AS DEFINED IN SECTION 19(b) OF THE FEDERAL RESERVE ACT) TO TAKE AN ITEM FOR COLLECTION OTHER THAN THE PAYING BANK.
PERSON ENGAGED IN THE BUSINESS OF BANKING, INCLUDING A SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, CREDIT UNION, OR TRUST COMPANY
A DEPOSITORY BANK IS ANY INSURED BANK, MUTUAL SAVINGS BANK, OR SAVINGS BANK AS DEFINED IN THE FEDERAL DEPOSITARY INSURANCE ACT (FDIA) OR ANY INSURED CREDIT UNION AS DEFINED IN THE FEDERAL CREDIT UNION ACT (FCUA)
A DEPOSITORY BANK IS THE FIRST BANK A CHECK IS TRANSFERRED TO (IE THE BOFD)
WHAT IS A CHECK AS DEFINED BY REGULATION CC 229.2(k)?
A WRITTEN ORDER SIGNED BY THE DRAWER. AN UNCONDITIONAL ORDER TO PAY A FIXED SUM OF MONEY ON DEMAND OR AT A DEFINITE TIME, TO A NAMED PAYEE OR BEARER
NEGOTIABLE DEMAND DRAFT DRAWN ON OR PAYABLE THROUGH A BANK, FEDERAL RESERVE BANK, FEDERAL HOME LOAN BANK, US TREASURY OR STATE OR LOCAL GOVERNMENT
NEGOTIABLE INSTRUMENTS
BANK DEPOSITS AND CREDITS
WHAT IS A NEGOTIABLE INSTRUMENT AS DEFINED BY UCC 3-104?
BANK DEPOSITS AND CREDITS
NEGOTIABLE DEMAND DRAFT DRAWN ON OR PAYABLE THROUGH A BANK, FEDERAL RESERVE BANK, FEDERAL HOME LOAN BANK, US TREASURY OR STATE OR LOCAL GOVERNMENT
AN ITEM THAT CAN BE NEGOTIATED THROUGH THE FEDERAL RESERVE BANK
A WRITTEN ORDER SIGNED BY THE DRAWER. AN UNCONDITIONAL ORDER TO PAY A FIXED SUM OF MONEY ON DEMAND OR AT A DEFINITE TIME, TO A NAMED PAYEE OR BEARER
WHAT ARE THE FIVE KEY CHECK PARTICIPANTS DURING THE NEGOTIATION PROCESS?
PAYOR, PAYEE, BANK OF FIRST DEPOSIT, CORRESPONDENT BANK, AND PAYING BANK
MAKER, COLLECTING BANK, FRB, AND PAYING BANK
MAKER, PAYEE, BOFD, PAYING BANK
PAYOR, PAYEE, BOFD, FRB, BANKER'S BANK
WHAT IS A TRANSIT CHECK?
A CHECK THAT IS DIRECT PRESENTED
A CHECK THAT IS GROSS SETTLED
A CHECK IN WHICH THE PAYING BANK AND BOFD ARE DIFFERENT
A CHECK IN WHICH BOTH THE MAKER/DRAWER AND PAYEE HAVE THE SAME INSTITUTION
WHAT ARE SOME CHECK PROCESSING METHODS?
TRANSIT, CLEARING HOUSE, ON-US, FEDERAL RESERVE BANK
POSTAL MONEY ORDERS, TRANSIT, DIRECT PRESENTMENT, CLEARING AND SETTLEMENT
CLEARING HOUSE, CORRESPONDENT BANK, DIRECT PRESENTMENT, UNITED STATES FEDERAL RESERVE SYSTEM
FEDERAL RESERVE, TRANSIT, CORRESPONDENT BANK, DIRECT PRESENTMENT
WHAT IS A CLEARING HOUSE?
CLEARING IS THE EXCHANGE OF ITEMS/DATA/INFO
IT IS MADE UP OF FINANCIAL INSTITUTIONS WHOSE TRANSIT ITEMS ARE PRIMARILY FROM FINANCIAL INSTITUTIONS WITHIN A LOCAL REGION.
THE CORRESPONDENT BANK
NEGOTIABLE DEMAND DRAFT DRAWN ON OR PAYABLE THROUGH A BANK
CAN A BANK PRESENT A CHECK DIRECTLY TO THE PAYING BANK FOR PAYMENT? IF SO, WHAT IS THAT ACT CALLED?
NO, THEY MUST GO THROUGH A CORRESPONDING BANK
NO, CHECKS ARE SETTLED THROUGH THE FEDERAL RESERVE SYSTEM
YES, BUT ONLY WHEN AN ON-US ITEM IS NEGOTIATED
YES, IT IS CALLED DIRECT PRESENTMENT
WHAT IS THE DIFFERENCE BETWEEN CLEARING AND SETTLEMENT?
CLEARING IS WHEN A CHECK IS PAID, WHEREAS SETTLEMENT IS WHEN THE PAYEE RECEIVES CREDIT
CLEARING IS THE MOVEMENT OF ACTUAL FUNDS, WHEREAS SETTLEMENT IS THE EXCHANGE OF ITEMS/DATA/INFO
CLEARING IS THE EXCHANGE OF ITEMS/DATA/INFO, WHEREAS SETTLEMENT IS THE MOVEMENT OF ACTUAL FUNDS
CLEARING IS WHEN THE PAYEE RECEIVES CREDIT WHEREAS SETTLEMENT IS WHEN A CHECK CLEARS THE MAKER'S ACCOUNT
WHAT ARE THE TWO TYPES OF SETTLEMENT?
NON-MONETARY & MONETARY
LUMP-SUM & INSTALLMENT
FINANCIAL & NET
GROSS & NET
WHAT DOES UCC STAND FOR. AND WHEN WAS IT FIRST PUBLISHED?
UNIFORM COMMON CODE, 1954
UNIFORM COMMERCIAL CODE, 1952
UNIFORM COMMERCIAL CODE, 1987
UNIFORM COMMON CODE, 1952
CAN THE UCC BE MODIFIED?
NO, EITHER IT IS ADOPTED BY THE GOVERNMENT, OR NOT.
YES, BUT ONLY BY THE BOARD OF THE UCC.
YES, IT IS A RECOMMENDATION FOR STATE LEGISLATORS TO ADOPT AND PORTIONS MAY BE MODIFIED BY STATE.
YES, IT IS A RECOMMENDATION FOR STATE LEGISLATORS TO ADOPT AND PORTIONS MAY ONLY BE MODIFIED BY THE FEDERAL GOVERNMENT.
WHERE HAS UCC BEEN ENACTED?
U.S.A., AND PUERTO RICO, GUAM, AND THE VIRGIN ISLANDS
ALL 50 STATES, AND CANADA
ALL 50 STATES, DISTRICT OF COLUMBIA, PUERTO RICO, GUAM, AND THE VIRGIN ISLANDS, AND CANADA
ALL 50 STATES, DISTRICT OF COLUMBIA, PUERTO RICO, GUAM, AND THE VIRGIN ISLANDS
WHAT DOES UCC ARTICLE 3 COVER?
NEGOTIABLE INSTRUMENTS
NEGOTIABLE INSTRUMENTS & TIME FRAMES
BANK DEPOSITS AND CREDITS
NEGOTIABLE INSTRUMENTS & BANK DEPOSITS AND CREDITS
WHAT DOES UCC ARTICLE 4 COVER?
NEGOTIABLE INSTRUMENTS & BANK DEPOSITS AND CREDITS
BANK DEPOSITS AND CREDITS
NEGOTIABLE INSTRUMENTS
NEGOTIABLE INSTRUMENTS & TIME FRAMES
WHAT SPECIFIC INFORMATION IS IN UCC ARTICLE 3?
DEFINES NEGOTIABLE INSTURMENT AND STANDARD OF CARE FOR CHECK PROCESSING, GIVES REQUIREMENTS OF A NEGOTIATED INSTRUMENT, EXPLAINS HOW TO ENFORCE AN INSTRUMENT, COVERS THE NEGOTIATION, TRANSFER, ENDORSEMENT, AND LIABILITY OF PARTIES OF NEGOTIABLE INSTURMENTS (INCLUDING TRANSFER AND PRESENTMENT WARRANTIES)
COVERS CHECK COLLECTION, PAYMENT, LIABILITIES, AND TIME FRAMES. EXPLAINS RESPONSIBILITIES OF PARTIES INVOLVED WITH CHECK COLLECTION (INCLUDING TRANSFER AND PRESENTMENT WARRANTIES)
SPECIFIES SCHEDULES WHICH BANKS MUST MAKE FUNDS AVAILABLE FOR: WITHDRAWAL, EXCEPTIONS TO THE SCHEDULES, DISCLOSURE OF FUNDS AVAILABILITY POLICIES, & PAYMENT OF INTEREST
CONTAINS PROVISIONS THAT PERTAIN TO SUBSTITUTE CHECKS, SUBSTITUTE CHECKS ARE THE LEGAL EQUIVALENT OF PAPER CHECKS (CAME ABOUT WHEN CHECK 21 WAS ENACTED IN 2004)
WHAT SPECIFIC INFORMATION IS IN UCC ARTICLE 4?
CONTAINS PROVISIONS THAT PERTAIN TO SUBSTITUTE CHECKS, SUBSTITUTE CHECKS ARE THE LEGAL EQUIVALENT OF PAPER CHECKS (CAME ABOUT WHEN CHECK 21 WAS ENACTED IN 2004)
SPECIFIES SCHEDULES WHICH BANKS MUST MAKE FUNDS AVAILABLE FOR: WITHDRAWAL, EXCEPTIONS TO THE SCHEDULES, DISCLOSURE OF FUNDS AVAILABILITY POLICIES, & PAYMENT OF INTEREST
DEFINES NEGOTIABLE INSTURMENT AND STANDARD OF CARE FOR CHECK PROCESSING, GIVES REQUIREMENTS OF A NEGOTIATED INSTRUMENT, EXPLAINS HOW TO ENFORCE AN INSTRUMENT, COVERS THE NEGOTIATION, TRANSFER, ENDORSEMENT, AND LIABILITY OF PARTIES OF NEGOTIABLE INSTURMENTS (INCLUDING TRANSFER AND PRESENTMENT WARRANTIES)
COVERS CHECK COLLECTION, PAYMENT, LIABILITIES, AND TIME FRAMES. EXPLAINS RESPONSIBILITIES OF PARTIES INVOLVED WITH CHECK COLLECTION (INCLUDING TRANSFER AND PRESENTMENT WARRANTIES)
WHAT IS EFAA, AND WHEN WAS IT ENACTED?
EXPEDITED FUNDS AVAILABILITY ACT ENACTED IN 1952
EXPEDITED FUNDS AVAILABILITY ACT ENACTED IN 1987
EXPEDITED FUNDS AVAILABILITY ASSOCIATION ENACTED IN 1952
EXPEDITED FINANCIAL AVAILABILITY ACT ENACTED IN 1987
WHY WAS THE EXPEDITED FUNDS AVAILABILTY ACT ENACTED?
TO DEFINE TERMS AND OUTLINE ENFORCEMENT AUTHORITY
SPECIFIES SCHEDULES WHICH BANKS MUST MAKE FUNDS AVAILABLE FOR: WITHDRAWAL, EXCEPTIONS TO THE SCHEDULES, DISCLOSURE OF FUNDS AVAILABILITY POLICIES, & PAYMENT OF INTEREST
TO ADDRESS THE ISSUE OF DELAYED FUNDS AVAILABILITY BY BANKS.
CONTAINS RULES TO SPEED THE COLLECTION AND RETURN OF CHECKS
WHAT ARE 3 THINGS THE EFAA REQUIRES?
1) TO MAKE FUNDS AVAILABLE SOONER 2) PAY INTEREST ON INTEREST-VEARING TRANSACTION ACCOUNTS NO LATER THAN THE DAY AFTER CREDIT IS RECEIVED 3) DISCLOSE FUNDS AVAILABILITY POLICY TO ACCOUNT HOLDERS
1) MAKE FUNDS DEPOSITED IN A TRANSACTION ACCOUNT AVAILABLE WITHIN A SPECIFIED TIME FRAME 2) PAY INTEREST ON INTEREST-BEARING TRANSACTION ACCOUNTS NO LATER THAN THE DAY CREDIT IS RECEIVED 3) DISCLOSE FUNDS AVAILABILITY POLICY TO ACCOUNT HOLDERS.
1) MAKE FUNDS DEPOSITED IN A TRANSACTION ACCOUNT AVAILABLE WITHIN A SPECIFIED TIME FRAME 2) PAY INTEREST ON INTEREST-BEARING TRANSACTION ACCOUNTS NO LATER THAN THE DAY CREDIT IS RECEIVED 3) DISCLOSE FUNDS AVAILABILITY POLICY TO ACCOUNT HOLDERS DURING EVERY DEPOSIT
1) MAKE FUNDS DEPOSITED IN A TRANSACTION ACCOUNT AVAILABLE WITHIN 2 BUSINESS DAYS 2) PAY INTEREST ON INTEREST-BEARING TRANSACTION ACCOUNTS NO LATER THAN THE DAY CREDIT IS RECEIVED 3) DISCLOSE FUNDS AVAILABILITY POLICY TO ACCOUNT HOLDERS.
WHAT FEDERAL REGULATION IS DIVIDED INTO 4 SUBPARTS?
REG J
UCC 3 & 4
ECCO
REG CC
WHAT IS COVERED UNDER REG CC SUBPART A?
CONTAINS PROVISIONS THAT PERTAIN TO SUBSTITUTE CHECKS, SUBSTITUTE CHECKS ARE THE LEGAL EQUIVALENT OF PAPER CHECKS (CAME ABOUT WHEN CHECK 21 WAS ENACTED IN 2004)
CONTAINS RULES TO SPEED THE COLLECTION AND RETURN OF CHECKS
DEFINES TERMS AND OUTLINES ENFORCEMENT AUTHORITY
SPECIFIES SCHEDULES WHICH BANKS MUST MAKE FUNDS AVAILABLE FOR: WITHDRAWAL, EXCEPTIONS TO THE SCHEDULES, DISCLOSURE OF FUNDS AVAILABILITY POLICIES, & PAYMENT OF INTEREST
WHAT IS COVERED UNDER REG CC SUBPART B?
CONTAINS RULES TO SPEED THE COLLECTION AND RETURN OF CHECKS
DEFINES TERMS AND OUTLINES ENFORCEMENT AUTHORITY
SPECIFIES SCHEDULES WHICH BANKS MUST MAKE FUNDS AVAILABLE FOR: WITHDRAWAL, EXCEPTIONS TO THE SCHEDULES, DISCLOSURE OF FUNDS AVAILABILITY POLICIES, & PAYMENT OF INTEREST
CONTAINS PROVISIONS THAT PERTAIN TO SUBSTITUTE CHECKS, SUBSTITUTE CHECKS ARE THE LEGAL EQUIVALENT OF PAPER CHECKS (CAME ABOUT WHEN CHECK 21 WAS ENACTED IN 2004
WHAT IS COVERED UNDER REG CC SUBPART C?
CONTAINS RULES TO SPEED THE COLLECTION AND RETURN OF CHECKS
DEFINES TERMS AND OUTLINES ENFORCEMENT AUTHORITY
SPECIFIES SCHEDULES WHICH BANKS MUST MAKE FUNDS AVAILABLE FOR: WITHDRAWAL, EXCEPTIONS TO THE SCHEDULES, DISCLOSURE OF FUNDS AVAILABILITY POLICIES, & PAYMENT OF INTEREST
CONTAINS PROVISIONS THAT PERTAIN TO SUBSTITUTE CHECKS, SUBSTITUTE CHECKS ARE THE LEGAL EQUIVALENT OF PAPER CHECKS (CAME ABOUT WHEN CHECK 21 WAS ENACTED IN 2004)
WHAT IS COVERED UNDER REG CC SUBPART D?
DEFINES TERMS AND OUTLINES ENFORCEMENT AUTHORITY
SPECIFIES SCHEDULES WHICH BANKS MUST MAKE FUNDS AVAILABLE FOR: WITHDRAWAL, EXCEPTIONS TO THE SCHEDULES, DISCLOSURE OF FUNDS AVAILABILITY POLICIES, & PAYMENT OF INTEREST
CONTAINS RULES TO SPEED THE COLLECTION AND RETURN OF CHECKS
CONTAINS PROVISIONS THAT PERTAIN TO SUBSTITUTE CHECKS, SUBSTITUTE CHECKS ARE THE LEGAL EQUIVALENT OF PAPER CHECKS (CAME ABOUT WHEN CHECK 21 WAS ENACTED IN 2004)
WHAT REGULATION PROVIDES THE LEGAL FRAMEWROK FOR DEPOSITORY INSTITUTIONS TO COLLECT CHECKS/ITEMS AND SETTLE BALANCES THROUGH THE FEDERAL RESERVE SYSTEM?
REGULATION J SUBPART A
REGULACTION CC SUBPART A
REGULATION J SUBPART C
REGULATION CC SUBPART C
WHICH REGULATION IN CONJUNCTION WITH REG CC ESTABLISHES RULES UNDER WHICH DEPOSITORY INSTITUTIONS MAY RETURN UNPAID CHECKS THROUGH THE FEDERAL RESERVE BANK?
REGULATION CC SUBPART C
REGULATION J SUBPART C
REGULATION CC SUBPART A
REGULATION J SUBPART A
HOW MANY APPENDICIES DOES OPERATING CIRCULAR 3 (OC3) HAVE?
3
5
8
6
WHICH REGULATION GOVERNS THE DETAILS OF THE FEDERAL RESERVE BANKS’ (FRB) HANDLING OF CASH ITEMS AND RETURNED CHECKS?
OC3 (OPERATING CIRCULAR 3)
REGULATION J SUBPART A
REGULATION CC SUBPART D
REGULATION CC SUBPART B
LIST A FEW DETAILS THAT OC3 (OPERATING CIRCULAR 3) COVERS
DEFINES TERMS AND OUTLINES ENFORCEMENT AUTHORITY, CONTAINS RULES TO SPEED THE COLLECTION AND RETURN OF CHECKS, ESTABLISTHES TERMS GOVERNING ADJUSTMENTS THROUGH THE FEDERAL RESERVE BANK
CLASSIFIES CASH AND NON-CASH ITEMS, SETS FORTH TERMS OF FRB SERVICES, PROVIDES INSTRUCTIONS FOR SENDING,PAYING,COLLECTING,AND RETURNING ITEMS, CONTAINS RULES TO SPEED THE COLLECTION AND RETURN OF CHECKS
SPECIFIES SCHEDULES WHICH BANKS MUST MAKE FUNDS AVAILABLE FOR; WITHDRAWAL, EXCEPTIONS TO THE SCHEDULES, DISCLOSURE OF FUNDS AVAILABLITY POLICIES, & PAYMENT OF INTEREST, ESTABLISHES TERMS GOVERNING ADJUSTMENTS THROUGH THE FEDERAL RESERVE BANK
CLASSIFIES CASH AND NON-CASH ITEMS, SETS FORTH TERMS OF FRB SERVICES, PROVIDES INSTRUCTIONS FOR SENDING, PAYING, COLLECTING, AND RETURNING ITEMS, ESTABLISHES TERMS GOVERNING ADJUSTMENTS THROUGH THE FEDERAL RESERVE BANK
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