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Misc Info Flashcards

1
Q

What are the different types of statements?

A

Safe-keeping statement

Image statement

Online statements

Enclosure statements

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2
Q

Safe-keeping statement

A

No physical checks included

Check number and dollar amount provided

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3
Q

Image statement

A

Image statements and special statement products such as CD Rom require only images and are set up to look in the bank’s image archive

Provide images of paid items

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4
Q

Online statements

A

Access account information and provide statement information via online access

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5
Q

Enclosure statements

A

Physical items are inserted including physical paper and other enclosures

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6
Q

Name common return codes

A

Customer: ACDIQ3Y
Administrative: IQUY456

A - NSF
C - STOP PAY
D - CLOSED ACCT
I - ENDORSEMENT MISSING
Q - NOT AUTHORIZED
3- Warranty Breach
Y - Duplicate Presentment

I - Image Missing
Q - ineligible
U - Unusable Image
Y - Disilicate Presentment
4 - RULE 8 RCC
5 - Rule 9 counterfeit/forgery
6 - Retired/Ineligible routing number

Note: Y the same in both, but I and Q had different meanings.

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7
Q

Return code A

A

NSF

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8
Q

Return code: C

A

Stop Pay

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9
Q

Return Code D

A

Closed Account

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10
Q

Customer Return Code I

A

Indorsement Missing

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11
Q

Customer Return Code Q

A

Not Authorized

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12
Q

Return code 3

A

Warranty Breach

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13
Q

Return code Y

A

Duplicate Presentment
can be both administrative and customer

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14
Q

Administrative Return code I

A

Image missing

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15
Q

Administrative Return Code Q

A

Ineligible

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16
Q

Return code U

A

Unusable image

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17
Q

Return code 4

A

Rule 8 RCC

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18
Q

Return code 5

A

Rule 9

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19
Q

Return code 6

A

Retired routing number ineligible

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20
Q

What is controlled disbursement?

A

bank product that provides customers with information early each day of total amount of checks that will clear allowing the customers the opportunity to fund their account for the actual amount of checks posted that day.

Benefit. Invest surplus

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21
Q

What benefits does controlled disbursement include?

A

Early notification of day’s funding requirement to eliminate idle balances
−
Customers can invest surplus funds or obtain additional funds, if needed
−
Money markets active and investment rates generally more attractive in morning
−
Short term investment rates generally move downward late in morning

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22
Q

What does EPC stand for and what are common codes?

A

External processing code

2, 4, 5, 6

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23
Q

What is EPC code 2?

A

Identify return items that can be processed within the forward presentment system and delivered directly to the BOFD

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24
Q

X9.100-10

A

Paper for MICR Documents

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25
X9.100-20
Print and Test Specifications for Magnetic Ink Printing (MICR)
26
X9.100-111
Physical Check Endorsements
27
X9 TR 2
Understanding, Designing and Producing Checks
28
X9 TR 6:
Guide to Quality MICR Printing and Evaluation
29
X9 TR 8
Check Security
30
X9 TR 33
Check Image Quality Assurance and Processes
31
X9 TR 47
Universal Companion Document of X9.100-187
32
X9 TR 100
Organization of Check-related Payments Standards
33
The ECCHO return hierarchy, you look at type 26 record first, then back of check, then record 28 and then return to source. But what is there is more than one 26 and 28 record?
When looking at the 26 records if more than one, look at the NEWEST one. Whis is the LAST record. OLDEST if more than one which is the FIRST one.
34
Delay in collection of deposited funds. Dollar value of items accepted for customer deposit for which the bank has not received settlement from the Paying Bank
Bank Float / incurred float.
35
Sum of dollars credited to a demand deposit account but not available for immediate withdrawal. Dollar value of items accepted for deposit for which the funds haven't been made available to the customer based on Regulation CC requirements and or other reasons.
Customer Float / allocated float
36
What is the difference between total bank float and customer float?
The difference can either be negative or positive.
37
Occurs when customer float is greater than bank float.
Negative float. Negative float * Customer float > bank float * C before B = - statement (Remember it's negative from the perspective of the bank. Customer is greater than bank = negative)
38
Occurs when bank float is greater than customer float.
Positive float Positive float * Bank float > customer float * B before C = + statement
39
Record 26 in ECCHO return hierarchy
NEWEST which is LAST.
40
Record 28 in ECCHO return hierachy
OLDEST which is FIRST
41
What is check cooking?
A type of counterfeit check. It uses digital tools to alter information such as payees name and amount. Similar to check washing, but since this is a new check and the original paper check was not altered, it is still considered a counterfeit check and the paying bank is liable.
42
What is a warrant?
It is NOT a check It is drawn against a state or local government treasury to disburse funds. It is a promise to be paid a specific amount at some point in the future
43
Presentment Warranties under UCC
EA-UA Enforceable Alteration Unauthorized signature - warrantor has no knowledge that signature is unauthorized Account Authorization for RCC consumer items, authorized.
44
At the request of the Paying Bank, the Fed may resend a file how many days after the original cash letter file is sent?
Two Days
45
Benefits of RDC to a corporate customer
Speed/convenience, enchanced cash flow, returns, bank relationships Accelerated clearings Convenience Enhanced cash flow Reduced return item risk processing efficiencies Potential for Consolidating bank relationships
46
What if there is discrepancies on the information of a check?
Remember: Humans Takes Precision with Notes Handwritten over typewritten Typewritten over printed words over numbers
47
Items Fed handles as Cash Items
REGS-D Regular Check sReg CC postdated and stale dated Electronic Checks Government and Postal checks Substitute checks Demand items / foreign - so long as acceptable to paying banks reserve bank and for foreign payable in U.S funds
48
Items Fed does NOT handle as cash items
Check declined 2+ times Micr F $ R2TSP routing number is retired passbook, certificate, or other attached document special instructions thickness of paper more than one thickness/ paper is damaged, unfit for processing or contaminated MICR not in ANSI standard Missing routing Missing dollar amount Missing fractional format
49
Cash letter may not include:
carrier envelope noncash item such as food coupons foreign items photocopies of missing destroyed items notices in lieu of return
50
Does ECCHO allow the exchange of items without a complete MICR line? If so, what is this?
Under agreement, exchange of electronic checks that are not fully qualified can be exchanged. Partial MICR permitted agreement.
51
What is partial MICR agreement?
Defined as As-read MICR which is obtained from automated scanning without repair, modification or manual keying of MICR information. RNA: Routing numbers and amount includes all information from routing and amount fields.
52
ECCHO Adjustment matrix provisions.
RD-DDT Reason Description Deadline Thresholds Documentation
53
What does REG CC settlement warning say?
Total amount of settlement equals total amount of checks. If there is a difference the other bank has the right to offset
54
What is a SOR adjustment?
Source of Receipt - used to identify RDC Bank for indemnity claim.
55
What is DISP adjustment?
Disposition - identifies where item was presented, returned,
56
What is the objective for check processing?
To clear checks using highest quality and most cost-effective means
57
What must you show when paying a bond?
show the Current Redemption Value (CRV) Employee initials cashing Date Name / location of branch /office
58
What are all the different series of Bonds?
A, B, C, D, E, EE, and I Savings notes.
59
Describe the Expedited Recredit reclaim process.
The consumer can make a claim within 40 days from receiving statement/ or IRD. If recredit is pending, provide credit up to $2500 within 10 days of claim. Recredit remainder within 45 calendar days of claim. Paying bank may recover from reconverting bank within 120 calendar days.
60
What is a payable through draft?
Drawn on the issuer, not the bank
61
Provide examples of survivable security features
digital water marks seal encoding barcodes QR codes serial numbers
62
Provide examples of non-survivable security features
holograms embossing color shifting inks watermarks
63
what are and are benefits to a customer for Image Cash Letters?
Reduced transportation costs reduced trips to the bank efficient back-office processing later deposit cutoff time allowing more checks deposited on the same day faster return processing and notice secure, private, and safe.
64
What is deposit reconciliation? What is partial reconciliation? what is full reconciliation?
Deposit reconciliation: Allows customer to maintain ONE account but receive deposits from multiple locations. Partial Reconciliation: Customer receives a report of the items paid, sorted usually by the customer's instructions. Full Reconciliation: Customer provides the bank data on the checks issued. Bank matches that data against the checks that cleared their account. Customer receives reconciliation reports including checks paid, outstanding items and exceptions.
65
What is characteristic of the Capture/Sort process? What is proof and encoding?
Receipt, Proof and Encoding - (dollar amount), Capture/sort - reading the MICR line to obtain electronic data and obtaining image of check, reject/repair - fix the broken ones, balancing, transmit the file, settlement.
66
Describe the steps of Rule 9
60 Calander days: WSUP 15 Business days - Rule 9 claim to BOFD 15 business days for BOFD to disclaim OR request copy of WSUP 15 business days for Paying bank to provide WSUP IF WSUP requested - 5 additional business days for BOFD to disclaim
67
What is Zero Balance Account and its benefits?
Service that as debits are charged to the account, funds automatically transfer from the master account. Benefits: Provides ability to maintain separate accounts for accounting controls, streamlines account management into single balance. customer can easily make daily investment, purchase, or payment.
68
what does OC 3 mention and what does OC 3 not mention?
MENTIONS: OC5, REG CC Subpart C and D, REG J, DOES NOT MENTION: UCC 4
69
Does the fed consider definitive securities to be cash items?
NO!
70
what cost savings features are there to using ICLs?
Consolidation of operations consolidation of reconciliation larger balances in a centralized account elimination of multiple accounts.
71
Third party relationships, what is the document that manages this?
FDIC, board of governor of Federal Reserve, OCC - Purpose: helps manage third party risks using risk approach, provides guidance and developing risk mgmt. practices for all stages of third party from selecting vendor to onboarding and termination.

NCP Flashcards Created By Me (19 decks)

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