Deposit Accounts Flashcards
2 major problems with checks
Nonpayment & Fraud
2 major problems with checks
Nonpayment & Fraud
What is a blank endorsement?
Just signing the back of a check with no instructions
True of False: Post dated checks are not illegal
True
What must a hold notice contain?
- Deposit date
- Amount held
- Reason for the hold
- Member account #
Are telephone transfers considered EFTs under Reg E?
Yes
What is the frequency of periodic statements required under Reg E?
Quarterly
Consumer liability if notifying FI within 2 business days
$50
Consumer liability if notifying FI after 2 business days
$500
What does TISA consider a “free” checking account?
Any checking account with no monthly fee
2 problems of checks
- Nonpayment
- Wrongdoing (fraud)
Define what a check is
A negotiable instrument that is an order to pay
Drawer
The person writing the check
Payor/drawee
The bank/credit union the check is drawn on
Payee
The person/entity the check is made payable to
Is an FI required to honor a stale dated check?
No
What are the 4 key requirements of Reg CC?
- Disclose holds
- Adhere to hold periods
- Endorse checks in black ink
- Expedite the return of unpaid checks
True or false? All checks are now local checks
True
What is an EFT?
An electronic transfer of funds thru:
- Telephone
- Electronic terminal
- Computer
Dividends
Earnings to members
How many decimal points does TISA require for disclosures?
2
