Governing Body, Regulation or Law Exercise

Question 1

Establishes the procedures for the interbank system of collecting checks and wire transfers and related provisions for settling balances and transferring funds in the Federal Reserve System.

Answer 1

Regulation J

Question 2

Governs the clearing and settlement of commercial ACH transactions by the Federal Reserve Banks, ODFIs, and RDFIs.

Answer 2

Federal Reserve Bank Operating Circular No. 4

Question 3

Applies only to Government securities issued by the Bureau of Public Debt and made through the ACH Network. These securities include Treasury bills, notes, and bonds, Government savings bonds and any other debt instrument issued by the Bureau of Public Debt.

Answer 3

Title 31 Code of Federal Regulations Part 370

Question 4

Specifies the requirements associated with reserves that depository institutions must maintain at Federal Reserve Banks. It further differentiates between “transaction accounts; and financial institutions must ensure that no more than the permitted withdrawals or transfers are made for a specific type of time deposit account.

Answer 4

Regulation D

Question 5

A banking circular issued to address large-dollar payment system risks. It outlines the policies, procedures, and controls that national banks must have in place for assessing risk associated with various payment systems in which the bank participates.

Answer 5

OCC 235

Question 6

Provides rules for financial institutions that use EFT mechanisms to process Federal tax payments through the Electronic Federal Tax Payment System. Financial institutions become legally bound to the regulation when they assist in completing enrollment form 9779 or initiate or receive a Prenote or live dollar tax payment.

Answer 6

Title 31 Code of Federal Regulation Part 203

Question 7

Applies to the handling of all cash items that we accept for forward collection and all returned checks that we accept for return.

Answer 7

Federal Reserve Banks Operating Circular No. 3

Question 8

Management of Federal Agency Disbursements

Answer 8

31 CFR part 208

Question 9

Limits an RDFI’s actions upon receipt of garnishment orders for an account receiving “Protected” Fed. Benefits via ACH.

Answer 9

31 CFR 212