Definitions

Question 1

Any bank handling a check for forward collection, except the paying bank.

Answer 1

Collecting bank

Question 2

First bank to which a check is transferred even through it may be also the paying bank
Aka BOFD

Answer 2

Depositary bank

Question 3

Bank that provides indemnity with respects to RCD or an ECI and substitute checks

Answer 3

Indemnifying Bank

Question 4

Bank by which a check is payable and it is sent for payment or collection.

Answer 4

Paying bank

Question 5

Bank handling a return check or a notice in lieu of return

Answer 5

Returning bank

Question 6

Bank that creates a substitute check or for substitute check created by non-bank
First bank that transfers, presents, or returns a substitute check
Note: bank that converts to image then back to paper

Answer 6

Reconverting bank

Question 7

Bank that removes the original check from the check collection process. Note: Bank that converts check to image.

Answer 7

Truncating Bank

Question 8

Deposit accounts at a bank from which account holders make transfer or withdrawals by negotiable instruments or other similar means to make payments to transfer funds to third parties.
Note: DDA, or share draft accounts

Answer 8

Account

Question 9

Time from day of deposit until funds are available to account holder for withdrawals or other uses.

Answer 9

Availability

Question 10

Funds available for all uses

Answer 10

Availability for withdrawals

Question 11

Business day, on which office of bank is open to public for substantially all banking functions.

Answer 11

Banking day

Question 12

Calendar day, other than a Saturday or Sunday or FRB legal holiday

Answer 12

Business day

Question 13

A direct obligation of The Bank

Answer 13

Cashiers check

Question 14

Negotiable draft

Answer 14

Check out

Question 15

Check like item, created electronically that never exist in paper

Answer 15

ECI-electronically created item

Question 16

Numbers which may include routing number, account number, check number, check amount, and other information that are printed in MICR ink

Answer 16

MICR Line

Question 17

Check not created by the paying bank does not bear signature and existed as a paper check
Note: EPC=6

Answer 17

RCC – remotely created check

Question 18

On back of check, ABA routing number, bracketed by inward facing arrows.
Banks name and location
Endorsement date

Answer 18

Depository bank endorsement

Question 19

On back of check, ABA routing # without arrows
Endorsement date

Answer 19

Subsequent collecting bank

Question 20

ABA routing number, on front and back of check, asterisks at each ends of routing number

Answer 20

Reconverting Bank

Question 21

ABA routing number that is in brackets only on the front of the check outside of the original check image.

Answer 21

Truncating Bank