Forward Exchange Warrantie/indemnification

Question 1

What type of warranties are included under Regulation CC?

Answer 1

Transfer warranties for settlement amount and encoding, presentment warranties for settlement amount and encoding, transfer and presentment warranties for remotely created checks, transfer warranties for Electronic Checks, substitute check warranties

These warranties ensure the accuracy and validity of check transactions.

Question 2

What are transfer warranties under RegCc?

Answer 2

Warranties related to the settlement amount and encoding of checks

Transfer warranties ensure that the check’s details are accurate when transferring ownership.

Question 3

What are presentment warranties under RegCc?

Answer 3

Warranties for settlement amount and encoding when presenting checks for payment

Presentment warranties confirm that the check is valid when it is presented to the bank.

Question 4

What warranties apply to remotely created checks under RegCc?

Answer 4

Transfer and presentment warranties for remotely created checks

These warranties ensure that remotely created checks are processed accurately.

Question 5

What warranties are associated with Electronic Checks under Reg Cc?

Answer 5

Transfer warranties for Electronic Checks

These warranties ensure the integrity of electronic transactions.

Question 6

What are substitute check warranties under RegCc?

Answer 6

Warranties related to the validity of substitute checks

Substitute checks are paper copies of electronic checks that carry warranties similar to original checks.

Question 7

What type of warranties under Ucc?

Answer 7

*Transfer Warranties
*Presentment Warranties
*Encoding Warranties

Question 8

What are ECCHO Rules warranties?

Answer 8

*Sending bank compliance
*Receiving bank compliance
*repair of an item
*forged and counterfeit warranties

Question 9

What are Regulation J warranties?

Answer 9

*senders warranties
*Reserve bank warranties

Question 10

What do sender warranties within reg j contain

Answer 10

*regarding handling of the item
*all electronic checks
*electronic items that are not representations of substitute checks

Question 11

What do reserve bank warranties include in reg j?

Answer 11

*regarding the item
*electronic checks
*electronic items that are not representations of substitute check warranties

Question 12

What are the indemnity provisions shown in Exhibit 3 related to?

Answer 12

Indemnity or other liability provisions for banks and/or customers

Question 13

What does Regulation CC Indemnities cover?

Answer 13

• Electronically created item (ECI)
• Remotely deposited check (RDC)
• Check 21 substitute check

Question 14

What indemnities are included under ECCHO Operating Rules?

Answer 14

• Sending bank breach of warranty of compliance with ECCHO Rules
• Receiving bank breach of warranty of compliance with ECCHO Rules
• Sending bank responsibility for Check 21 liability incurred by receiving bank

Question 15

What does Regulation J Indemnities cover?

Answer 15

• Sender’s breach of warranties regarding the item
• FRB’s breach of warranties regarding the item
• FRB’s certain substitute check liability
• Return Warranties
• Warranties and other responsibility for returned check, return substitute check

Question 16

What warranties are included in Regulation CC Warranties?

Answer 16

• Settlement amount and encoding
• Returned check
• Notice of nonpayment

Question 17

Fill in the blank: Regulation CC Indemnities include Electronically created item (ECI), Remotely deposited check (RDC), and _______.

Answer 17

[Check 21 substitute check]

Question 18

What liabilities are covered under Regulation J Indemnities?

Answer 18

• Sender’s breach of warranties
• FRB’s breach of warranties
• FRB’s substitute check liability