Check Payments Flashcards
What is another word for Substitute Check
Image Replacement Document (IRD)
When was the MICR line policy adopted?
1956
This check payment system participant is comparable to the receiver of ACH debit Entries.
Payor
This check payment system participant is comparable to the Originator of debit ACH entries.
Payee
Referred to as depositary bank or payee’s depository financial institution.
Bank of First Deposit (BOFD)
Party due payment indicated on check.
Payee
Comparable to ODFI for ACH debit entries
Bank of First Deposit (BOFD)
Private depository institution, Banker’s Bank, or Federal Reserve Bank providing clearing or settlement services to paying bank or collecting bank.
Correspondent Bank
Institution at which check is deposited
Bank of First Deposit (BOFD)
Comparable to RDFI for ACH debit Entries
Paying Bank
Known as check writer, maker or drawee.
Payor
Institution that creates image of original check.
Truncating Bank
Financial institution that creates substitute check.
Reconverting Bank
When was the routing # policy adopted?
1911
Refers to physical path check follows
Check Clearing
Refers to process of ensuring funds represented by check are debited from and credited to appropriate accounts.
Check Collection
What’s the name of a check when Payor and Payee have accounts at same Financial institution?
On-Us Checks
Governs negotiable instruments.
Uniform Commercial Code Article 3
Governs Check Collection
Uniform Commercial Code Article 4
Regulation CC Subpart B
Funds Availability
Regulation CC Subpart C
Collection of Checks
Regulation CC Subpart D
Substitute Checks (i.e., Check 21 Act)
Regulation J - Subpart A
Procedures for inter-bank system of collecting checks through Federal Reserve Bank
Federal Reserve Bank Operating Circular 3
Governs clearing and settlement for checks cleared through Federal Reserve System
Governs image rules for check exchanges between it’s members
ECCHO Rules
Governs ACH check conversion and check truncation
Nacha Operating Rules
