ABA-Certified Regulatory Compliance Manager - CRCM Set 4

1.

When returning items to a Reserve Bank, the paying and returning banks:

Cannot disclaim the warranties, authorizations, and agreements whether or not the returned check bears an endorsement of the paying bank or returning bank Authorize the Reserve Bank to handle the item in accordance with Regulation J and the operating circulars Warrant that the check bears all endorsements applied by all parties that handled the check in paper or electronic form will not be liable for the failure of a paying bank, collecting bank, or a nonbank payer to pay for an item

2.

The liability of paying and returning banks is subject to the following conditions and limitations EXCEPT:

The paying or returning bank that sends an original check that is returned as a substitute check or paper or electronic representation thereof will not be

responsible for amounts the Reserve Bank pays under Regulation CC absent the paying bank's or returning bank's agreement to the contrary Regulation CC governs the paying and returning banks' liabilities when returning a substitute check or paper or electronic representation thereof The paying or retuning bank that sends an electronic item that is not a representation of a substitute check will not be liable for losses attributable to theReserve Bank's own lack of good faith or failure to exercise ordinary care Paying and returning banks agree to indemnify each Reserve Bank for any loss or expense resulting from the paying or returning bank's lack of authorization orany action by a Reserve Bank within the scope of its authority related to the return of the check or any warranty made by the Reserve Bank

3.

A Reserve Bank makes the following warranties when it handles ___________:

A returned item A returning pay check Clearing the payments Under Regulation Z

4.

If the returned check is an electronic item that is not a representation of a ___________, Reserve Banks will indemnify a bank to which the check is returned if the bank incurs losses as a result of indemnities the bank would be required to make under Regulation CC in connection with a substitute check later created from the returned check. A Reserve Bank will not be liable, however, if the loss could be attributed to a lack of good faith or failure to exercise ordinary care on the part of any person who handled the item.

Returning check Substitute check Cross check Retuning item

5.

Which of the following is/are included in the persons covered under Fedwire transfer coverage?

Reserve Banks sending or receiving payment orders Senders of payments to a Reserve Bank Banks receiving payments from a Reserve Bank None of these

6.

Transfers involving entries to accounts maintained at two different Reserve Banks are:

Fedwire transfers Interdistrict transfers Intradistrict transfers Any one of these

7.

The following mentioned points are actually _______________.

Fedwire transfers Interdistrict transfers Intradistrict transfers Any one of these

8.

In Sender's agreement-12 CFR 210.28 it is clearly mentioned that:

Reserve Banks have the right to debit payment amounts from accounts of senders with the Reserve Bank Senders have the right to create overdrafts in their accounts at the Reserve Bank; any overdraft is due and payable, without demand, at the end of the fundstransfer day, when the Reserve Bank deems itself to be insecure, or at the time the sender suspends payments or is closed, whichever is earlier Sender gives the Reserve Bank a security interest in all of sender's assets that are in the possession of the Reserve Bank to secure any obligations to theReserve Bank, including an overdraft Senders have 25 calendar days after receiving notice of a payment order to notify a Reserve Bank of an erroneously executed or unauthorized payment order

9.

__________________ is a transfer that is authorized in advance to occur at substantially regular intervals. Payments that require the consumer to take specific actions to initiate them (such as by entering instructions on a touch-tone telephone or on the Internet) are not such type of EFTs.

A preauthorized EFT A postauthorized EFT A standard format EFT A customized EFT

10.

Initial disclosure under Electronic funds transfer act includes:

A summary of the consumer's liability for unauthorized transfers Telephone number and address of person or office to be notified in case of any authorized transfer The type of EFT the consumer may make and any limitations on EFTs A summary of institution's liability to consumer for failure to make or stop transactions

ABA-Certified Regulatory Compliance Manager - CRCM Set 4

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ABA-Certified Regulatory Compliance Manager - CRCM Set 4

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