ABA CRCM Practice Test - Questions Answers, Page 21

A Reserve Bank makes the following warranties when it handles___________:

* For all items, the Reserve Bank warrants that the returned checks bear all endorsements by all parties that previously handled the checks

* For all electronic items, the Reserve Bank warrants all of the

* Regulation CC warranties as though they were paper checks

* For electronic items that are not representations of substitute checks, the Reserve Bank warrants the following to the bank to which it sends the item:

(a) The electronic portion of the item accurately represents all of the information on the front and back of the check as of the time the check was truncated

(b) All MICR line information is contained on the item

(c) The item conforms to the technical standards set forth in the operating circular

(d) No person will receive a transfer, presentment, or return, or otherwise be charged for the item such that the person will be asked to make payment based on an item he or she has already paid

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.

The institution need not provisionally credit the consumer's account if it requires but does not receive written confirmation of oral notice of error or if the error involves an account subject to the margin requirements of______________.

The OCC has determined that a national bank may not assume that, simply because a consumer's PIN or ATM card was used in a transaction, that transaction is authorized. Banks are required to take reasonable steps to determine whether the transaction was authorized. Such steps might include the bank's review of:

To stop a payment of a preauthorized transfer, consumer must notify the institution or in writing at least:

Payroll card accounts established directly or indirectly by an employer for the purpose of electronically transferring an employee's wages, salary, or other compensation on a recurring basis, are covered by:

As an alternative to providing a periodic statement, a financial institution holding payroll card accounts may make available:

As an alternative to providing a periodic statement, a financial institution holding payroll card accounts may make available:

Following institutions comes under the heading of ________________:

* Institutions subject to the commodity Futures Trading Commission

* The Federal Agriculture Mortgage Corporation or institutions charted and operating under the Farm credit Act

* Institutions charted by Congress to engage in securitizations, secondary market sales, or similar transactions, provided that the institution does not sell or transfer nonpublic personal information to nonaffiliated third parties