Deposit Accounts

Question 1

2 major problems with checks

Answer 1

Nonpayment & Fraud

Question 2

2 major problems with checks

Answer 2

Nonpayment & Fraud

Question 3

What is a blank endorsement?

Answer 3

Just signing the back of a check with no instructions

Question 4

True of False: Post dated checks are not illegal

Answer 4

True

Question 5

What must a hold notice contain?

Answer 5

1. Deposit date
2. Amount held
3. Reason for the hold
4. Member account #

Question 6

Are telephone transfers considered EFTs under Reg E?

Answer 6

Yes

Question 7

What is the frequency of periodic statements required under Reg E?

Answer 7

Quarterly

Question 8

Consumer liability if notifying FI within 2 business days

Answer 8

$50

Question 9

Consumer liability if notifying FI after 2 business days

Answer 9

$500

Question 10

What does TISA consider a “free” checking account?

Answer 10

Any checking account with no monthly fee

Question 11

2 problems of checks

Answer 11

1. Nonpayment
2. Wrongdoing (fraud)

Question 12

Define what a check is

Answer 12

A negotiable instrument that is an order to pay

Question 13

Drawer

Answer 13

The person writing the check

Question 14

Payor/drawee

Answer 14

The bank/credit union the check is drawn on

Question 15

Payee

Answer 15

The person/entity the check is made payable to

Question 16

Is an FI required to honor a stale dated check?

Answer 16

No

Question 17

What are the 4 key requirements of Reg CC?

Answer 17

1. Disclose holds
2. Adhere to hold periods
3. Endorse checks in black ink
4. Expedite the return of unpaid checks

Question 18

True or false? All checks are now local checks

Answer 18

True

Question 19

What is an EFT?

Answer 19

An electronic transfer of funds thru:

1. Telephone
2. Electronic terminal
3. Computer

Question 20

Dividends

Answer 20

Earnings to members

Question 21

How many decimal points does TISA require for disclosures?

Answer 21

2