Products Flashcards

Question

What UCC rules is a cashier check's guaranteed obligation of the bank and penalties for wrongfully refusing payment noted in?

Answer 1

3-411. REFUSAL TO PAY CASHIER'S CHECKS, TELLER'S CHECKS, AND CERTIFIED CHECKS

Answer 2

must be signed by either remitter or payee. It may depend on who had possession of the check at the time it was lost However, there is no obligation that it's one or the other, but a declaration of loss must be provided. Any decision to require the payee to also sign a declaration of loss would be a business decision, but for practicality, its usually always the remitter

Answer 3

Person who claims right to receive amount of cashier’s check (or teller's check, or certified check) that was lost, destroyed, or stolen

Answer 4

Issuer of cashiers check

Answer 5

the person who purchases the cashier check from the issuing bank.

Answer 6

UCC 3-312 3-312. LOST, DESTROYED, OR STOLEN CASHIER'S CHECK, TELLER'S CHECK, OR CERTIFIED CHECK.

Answer 7

Declaration of loss process, Statute of limitations means that the claimant makes a claim within 3 years if check meets the following conditions: 1.the person making the claim must be either the remitter or payee of the cashier check. 2. Must include a declaration of loss. 3. the claimer cannot obtain possesion of the check becuase it's lost or destroyed or someone else who shold not have it, has it 4. Must be received before the check has cleared. If the check has cleared, then not much that can be done.

Answer 8

Claim enforceable at the later of: Time claim is asserted; or 90th day following date of check Earliest date lost/stolen claim is enforceable = 90th day after issue date Note: If check is returned prior to 90 days, claiment has holder in due course rights. .

Answer 9

Issued by state or local government agencies: Treated as checks if they are payable on demand ▪ Many are actually payable-through-drafts ▪ Registered Warrants - Not a check/promise to pay (IOU)

Answer 10

items that are Generally, not eligible for image exchange Defined by Reg CC §229.2(u) as: ▪ Item that would otherwise be a check, except that a passbook, certificate or OTHER DOCUMENT is attached; ✓ Is accompanied by SPECIAL INSTRUCTIONS such as a request for special advice of payment or dishonor; ✓ Consists of more than a single THICKNESS of paper ⧫ Except a check that qualifies for handling by automated check processing equipment ✓ Has not been preprinted or post-encoded in MAGNETIC INK with the routing number of the paying bank ✓ Is a FOREIGN ITEM

Answer 11

Reporting Receivable Processing Disbursement Account Reconciliation Products ARP Controlled Disbursement

Answer 12

Cash management product: Balance Reporting Zero Balance Accounting –

Answer 13

A subtype of a type of cash management product called Reporting. Secure, internet-based reporting of account and transaction information at a customer’s lead ban Example: For example, may include balances in foreign currencies, balances at other banks, information on cash positions and float, or investments

Answer 14

A subtype of a type of cash management product called Reporting Designed for customers who fund decentralized accounts from a central main account As debits are charged to ZBAs, funds automatically transfer from the master account to cover the debit and bring the sub-account balance to zero ▪May also be referred to as sweep accounts

Answer 15

A type of Cash Management product that includes services such as: Lockbox which entails Retail Lockbox and Wholesale Lockbox.

Answer 16

Lockbox is a subtype of a Receivable processing product which is a type of cash management product. IN short: Cash management service offered by banks to customers to expedite receivables processing Retail Lockbox Wholesale lockbox

Answer 17

Companies, such as utilities, that receive a high volume of payments via checks in the mail ✓ May include a check and a remit advice/stub which can be processed/captured in an automated process

Answer 18

Wholesale Lockbox - Companies with small numbers of payments, sometimes with detailed requirements for processing, such as a doctor’s or dentist’s office - supports non-standard forms

Answer 19

Retail benefits companies who receive HIGH VOLUME of payments. Examples: Utilities company. Wholesale benefits companies who receive SMALL VOLUME of payments. Example: doctors offices,

Answer 20

It is a type of cash management product in which bank offers reconcilement services. The goal is to Increase amount of information and decrease amount of work in company’s accounting 1. Full Reconciliation 2. Partial REconciliation 3. Deposit Reconciliation 4. Positive Pay Services 5. Reverse Positive Pay Services 6. Controlled Disbursement

Answer 21

A type of Account Reconciliation Product ARP in which: Customer provides the banks the 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

Answer 22

A type of Account Reconciliation Product ARP in which: Customer receives a report of the items paid sorted usually by the customer’s instructions

Answer 23

A type of Account Reconciliation Product ARP in which: Allows customer to maintain one account but have deposits from multiple business locations

Answer 24

Positive Pay Services are themselves types of Account Reconciliation services. There are three main types. Positive Pay Payee Positive Pay Reverse Positive Pay

Answer 25

Service where the bank automatically matches each check presented against amount and check number on listing of checks issued

Answer 26

Service where bank sends information on checks to be posted to the customer and the customer compares each amount and check number to its listing of checks issued Allows customer to monitor and review checks.

Answer 27

Service that matches the payee name from the issue file to the payee name on the check Benefits: Bank reviews and flags checks that may be fraudulent (not on the listing of checks issued) and alerts the customer for decision to pay/not pay

Answer 28

It is a type of cash management product, an Account Reconciliation service in which allows? Daily report provided early in the day to the customer detailing the amount of disbursements that will be charged to the account that day

Answer 29

Timely notification of daily funds needed Reporting of funds that are transferred Reduction of idle balances Increased interest income from short term borrowing Reduced borrowing costs

Products Flashcards

(53 cards)