Reg CC Subpart C-collection Of Checks Flashcards

1
Q

A paying bank returns a check such that the check would normally be received by the depository bank no later than 2pm on second business day following banking day of presentment.

A

Expeditious return

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

When is a notice of nonpayment required?

A

If returned item is equal/greater than $5000.
Note: return can satisfy the Notification if return expeditiously.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is UCC’s return requirement?

A

Midnight

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is Reg CC return requirement?

A

Expeditious time frame

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What can a paying bank do if they are unable to identify the depository bank?

A

May send return check to any bank that handled check for forward collection.
Note: Paying bank must advise that they were unable to identify BOFD. Expeditious return requirements do not apply.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is notice in lieu (NIL) of return?

A

When check is unavailable for return,may send:
Copy of front/bank of check and
Written notice of nonpayment containing the information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Bank other than paying or depositary bank, that handles a returned check or notice in lieu of return?

A

Returning bank
Reg CC definition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Depositary Bank must notify there customer of the return by?

A

Midnight of the banking day following the banking day on which it received the return check or notice or within a longer reasonable time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Return check/written notice of nonpayment received in error

A

Misrouted return check

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Burden of proof of late claim for certain non electronic returns falls on who?

A

Depositary bank asserting claim

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

List Reg CC warranties and indemnities

A

-Electronic checks/electronic returned checks
-Transfer & Presentment of remotely created checks
-settlement amount,encoding,and offset
-returned check/notice of nonpayment
-RDC Indemnity
-ECI Indemnity
-Substitute checks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Assurance that certain conditions will be met?

A

Warranty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Promise to reimburse a person for a loss they suffer
Aka. Promise of protection

A

Indemnity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Electronic check

A

Electronic image that accurately represents information on front and back of original check (at time check was truncated).
Must include accurate record of MIRC line and amount of check

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Return warranty 229.34 (d)

A

Paying bank/returning bank:
-return within UCC midnight deadline
-authorized to return check
-check not materially altered
-for notice in lieu of return, original check has not and will not be returned.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Return warranties can not be made for which type of checks?

A

-drawn on US Treasury
-US Postal service money order, or
-drawn on state or a unit of general local government that are not payable through or at a bank

17
Q

Notice of nonpayment warrant 229.34(e)

A

Paying bank returning a check $5,000 or greater must provide notice, and warrants:
-check is and will be returned within the UCC deadline
-authorized to send notice,and
-check has not been materially altered

18
Q

Settlement amount,encoding,and offset warranty 229.34(c)

A

Presenting bank:
-total amount of checks presented equal total total settlement demanded
-accompanying info accurately indicates total amount of checks
-info encoded in magnetic ink is correct. Includes any info in MIRC line of substitute check.

19
Q

Remotely Created Check warranty 229.34(b)

A

Bank that transfers or presents a remotely created check:
-person on whose account the check is drawn on authorized issuance of the item, in the amount stated on the check and to the payee on the check

20
Q

Difference between remotely created check and ECI?

A

Remotely created check started as a paper check whereas ECI item did not.

21
Q

No person will receive a transfer, presentment,or return of, or otherwise be charged for an electronic check or electronic return check, the original, a substitute, or paper or electronic representation of a substitute such that the person will be asked to make payment based on a check it has already paid.

A

No double debit warranty aka duplicate warranty

22
Q

Bank that truncates a original check or accepts a truncated image for transfer,presentment, or returns of original item or substitute check

A

Truncating Bank
Reg CC 229.2(eee)(2)

23
Q

Truncating bank indemnify a depositary bank that accepts the original check for deposit for losses incurred by that depositary bank if the loss is due to the check having already been paid and original item didn’t bore a restrictive endorsement.

A

RDC Indemnity
Reg CC 229.34(f)

24
Q

RDC indemnity happens between what two banks?

A

Only between both BOFD.

25
Q

Shall not exceed amount of item plus interest compensation and expenses related to item if any.

A

Breach of warranty damages
Reg CC 229.34(h)

26
Q

May give prior bank in collection or return chain written notice of litigation

A

Breach of warranty tender of defense
Reg CC 229.34(j)

27
Q

Must be made within 30 days after claimant has reason to know of breach and identity of warranting bank then
Warranting bank discharges to the extent of any loss caused by the delay in giving notice of the claim.

A

Notice of claim 229.34 (k)

28
Q

Designed to prevent fraudulent/stale claims from arising after all evidence lost or after facts have become obscure through passage of time.
(One year)

A

Statute of limitations
Reg CC (229.38)