Free CRCM Exam Braindumps (page: 136)

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 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

If the returned check is an electronic item that is not a representation of a , Reserve Banks will indemnify a bank to which the check is returned if the bank incurs losses as a result of indemnities the bank would be required to make under Regulation CC in connection with a substitute check later created from the returned check. A Reserve Bank will not be liable, however, if the loss could be attributed to a lack of good faith or failure to exercise ordinary care on the part of any person who handled the item.

If the returned check is an electronic item that is not a representation of a , Reserve Banks will indemnify a bank to which the check is returned if the bank incurs losses as a result of indemnities the bank would be required to make under Regulation CC in connection with a substitute check later created from the returned check. A Reserve Bank will not be liable, however, if the loss could be attributed to a lack of good faith or failure to exercise ordinary care on the part of any person who handled the item.