Rules & Regulations

Question 1

Which warranties contain:
1. Warrantor is entitled to enforce the item;
2. All signatures on the item are are authentic and authorized;
3. Item has not been altered;
4. Item is not subject to defense or claim or recoupment;
5. Warrantor has no knowledge of any insolvency proceeding commenced with respect to maker of accptor or, in the case of an unaccepted draft the drawer
6. With respect to RCC consumer item, person on whose account item is drawn authorized item and the amount for which it was drawn.

Answer 1

UCC Transfer Warranties 4-207

Question 2

Which warranties contain:
1. Warrantor is entitled to enforce draft or authorized to obtain payment or acceptance of the draft on behalf of a person entitled to enforce the draft;
2. Item has not been altered; and
3. Warrantor has no knowledge that signature of the purported drawer of the draft is unauthorized; and
4. With respect to RCC consumer item, person on whose account item is drawn authorized item and the amount for which it was drawn.

Answer 2

UCC Presentment Warranties 4-208

Question 3

Which regulation subpart provides rules to govern funds transfers through the Fedwire Funds Service?

Answer 3

Regulation J, Subpart B - Funds Transfers through the Fedwire Funds Service

Question 4

Which regulation subpart governs the collection of checks and other cash and noncash items and the handling of returned checks by Federal Reserve Banks?

Answer 4

Regulation J, Subpart A - Collection of Checks and Other Items by Federal Reserve Banks

Question 5

Which laws and regulations govern the check reclamation process?

Answer 5

• 31 U.S.C. 3712 - Establishes (1) Fiscal Service’s right to demand a refund and (2) Treasury Check Offset (TCO).
• 31 U.S.C 3711-3720E - Establishes (1) the government’s right to collect debts using various collection tools and (2) the rates at which a federal entity assesses interest, penalties and fees.
• 31 CFR 240- Establishes (1) direct debit process, (2) process to add interest, penalties and administrative fees to delinquent debts, (3) process to refer reclamation debts for collection by offset, & (4) that Fiscal Service will take necessary action to collect delinquent reclamation debts.
• Limited Payability - reduced the time period for (1) negotiating US Treasury check and (2) filing non-receipt claims to 1 year from check issue date, and (3) Inintiating reclamation action to 1.5 years from check paid date.

Question 6

Operating circular 3 references which rules and regulations?

Answer 6

• Regulation CC, Subparts C & D
• Operating Circular 5
• Regulation J, Subpart A