QUESTION: 181

The liability of paying and returning banks is subject to the following conditions and limitations EXCEPT:

The paying or returning bank that sends an original check that is returned as a substitute check or paper or electronic representation thereof will not be responsible for amounts the Reserve Bank pays under Regulation CC absent the paying bank's or returning bank's agreement to the contrary
Regulation CC governs the paying and returning banks' liabilities when returning a substitute check or paper or electronic representation thereof
The paying or retuning bank that sends an electronic item that is not a representation of a substitute check will not be liable for losses attributable to the Reserve Bank's own lack of good faith or failure to exercise ordinary care
Paying and returning banks agree to indemnify each Reserve Bank for any loss or expense resulting from the paying or returning bank's lack of authorization or any action by a Reserve Bank within the scope of its authority related to the return of the check or any warranty made by the Reserve Bank

Answer(s): D

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QUESTION: 181

The liability of paying and returning banks is subject to the following conditions and limitations EXCEPT:

The paying or returning bank that sends an original check that is returned as a substitute check or paper or electronic representation thereof will not be responsible for amounts the Reserve Bank pays under Regulation CC absent the paying bank's or returning bank's agreement to the contrary
Regulation CC governs the paying and returning banks' liabilities when returning a substitute check or paper or electronic representation thereof
The paying or retuning bank that sends an electronic item that is not a representation of a substitute check will not be liable for losses attributable to the Reserve Bank's own lack of good faith or failure to exercise ordinary care
Paying and returning banks agree to indemnify each Reserve Bank for any loss or expense resulting from the paying or returning bank's lack of authorization or any action by a Reserve Bank within the scope of its authority related to the return of the check or any warranty made by the Reserve Bank

Answer(s): D

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QUESTION: 181

The liability of paying and returning banks is subject to the following conditions and limitations EXCEPT:

The paying or returning bank that sends an original check that is returned as a substitute check or paper or electronic representation thereof will not be responsible for amounts the Reserve Bank pays under Regulation CC absent the paying bank's or returning bank's agreement to the contrary
Regulation CC governs the paying and returning banks' liabilities when returning a substitute check or paper or electronic representation thereof
The paying or retuning bank that sends an electronic item that is not a representation of a substitute check will not be liable for losses attributable to the Reserve Bank's own lack of good faith or failure to exercise ordinary care
Paying and returning banks agree to indemnify each Reserve Bank for any loss or expense resulting from the paying or returning bank's lack of authorization or any action by a Reserve Bank within the scope of its authority related to the return of the check or any warranty made by the Reserve Bank

Answer(s): D

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A Reserve Bank makes the following warranties when it handles :
· For all items, the Reserve Bank warrants that the returned checks bear all endorsements by all parties that previously handled the checks · For all electronic items, the Reserve Bank warrants all of the · Regulation CC warranties as though they were paper checks · For electronic items that are not representations of substitute checks, the Reserve Bank warrants the following to the bank to which it sends the item:
(a) The electronic portion of the item accurately represents all of the information on the front and back of the check as of the time the check was truncated (b) All MICR line information is contained on the item (c) The item conforms to the technical standards set forth in the operating circular (d) No person will receive a transfer, presentment, or return, or otherwise be charged for the item such that the person will be asked to make payment based on an item he or she has already paid

A returned item
A returning pay check
Clearing the payments
Under Regulation Z

Answer(s): A

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QUESTION: 181

QUESTION: 181

QUESTION: 181

QUESTION: 182