Check Payments

Question 1

What is another word for Substitute Check

Answer 1

Image Replacement Document (IRD)

Question 2

When was the MICR line policy adopted?

Answer 2

1956

Question 3

This check payment system participant is comparable to the receiver of ACH debit Entries.

Answer 3

Payor

Question 4

This check payment system participant is comparable to the Originator of debit ACH entries.

Answer 4

Payee

Question 5

Referred to as depositary bank or payee’s depository financial institution.

Answer 5

Bank of First Deposit (BOFD)

Question 6

Party due payment indicated on check.

Answer 6

Payee

Question 7

Comparable to ODFI for ACH debit entries

Answer 7

Bank of First Deposit (BOFD)

Question 8

Private depository institution, Banker’s Bank, or Federal Reserve Bank providing clearing or settlement services to paying bank or collecting bank.

Answer 8

Correspondent Bank

Question 9

Institution at which check is deposited

Answer 9

Bank of First Deposit (BOFD)

Question 10

Comparable to RDFI for ACH debit Entries

Answer 10

Paying Bank

Question 11

Known as check writer, maker or drawee.

Answer 11

Payor

Question 12

Institution that creates image of original check.

Answer 12

Truncating Bank

Question 13

Financial institution that creates substitute check.

Answer 13

Reconverting Bank

Question 14

When was the routing # policy adopted?

Answer 14

1911

Question 15

Refers to physical path check follows

Answer 15

Check Clearing

Question 16

Refers to process of ensuring funds represented by check are debited from and credited to appropriate accounts.

Answer 16

Check Collection

Question 17

What’s the name of a check when Payor and Payee have accounts at same Financial institution?

Answer 17

On-Us Checks

Question 18

Governs negotiable instruments.

Answer 18

Uniform Commercial Code Article 3

Question 19

Governs Check Collection

Answer 19

Uniform Commercial Code Article 4

Question 20

Regulation CC Subpart B

Answer 20

Funds Availability

Question 21

Regulation CC Subpart C

Answer 21

Collection of Checks

Question 22

Regulation CC Subpart D

Answer 22

Substitute Checks (i.e., Check 21 Act)

Question 23

Regulation J - Subpart A

Answer 23

Procedures for inter-bank system of collecting checks through Federal Reserve Bank

Question 24

Federal Reserve Bank Operating Circular 3

Answer 24

Governs clearing and settlement for checks cleared through Federal Reserve System

Question 25

Governs image rules for check exchanges between it’s members

Answer 25

ECCHO Rules

Question 26

Governs ACH check conversion and check truncation

Answer 26

Nacha Operating Rules