NCP-National Check Professional Certification Exam Questions and Answers Graded A+
UCC 3-302
-took item in good faith
-took item for value
-without notice item is OVERDUE or has been dishonored
-without notice signature was unauthorized or item altered
-without knowledge of claims against it - Answers Holder in Due Course: What are the 5 criteria's to
meet these requirements?
90 days
UCC 3-304 - Answers Check is Overdue?
You can enforce item against the drawer-directly back to drawer - Answers Benefit to having a HIDC
status?
Blank-Payee signs exactly how it is on the front of the check
Special-Pay to the order of
Restrictive-For deposit only
Anomalous- Signed by someone other than the holder or transferor of instrument. - Answers What are
the UCC Indorsements?
1762-Paying bank is in best position to detect forged drawers signature.
So they should bear the loss
UCC presentment warranties sections 3-4127a & 4-208a - Answers Price vs. Neal
UCC 3-416 & 4-207 - Answers What law does Transfer Warranties fall under?
-Warrantor is a person entirely to enforce the instrument
-All signatures on the instrument are authentic and authorized
-Instrument has not been altered
-Instrument not subject to defense or claim
-Warrantor has no knowledge of any insolvency proceeding with respect to maker
, -For remotely created consumer item, person on whose account the item is drawn authorized item and
amount for which the item is drawn - Answers What makes a UCC Transfer Warrantie?
-Person obtaining payment and previous transferor, at the time of presentment warrants they are
-entitled to enforce draft
-item not altered
-Warrantor has no knowledge that signature of the purported drawer of the draft is unauthorized
-remotely created consumer item, person authorized amount and account drawn off of - Answers What
makes it a UCC Presentment Warranty?
Business day on which office of bank is open to public for substantially ALL banking functions - Answers
Banking Day definition?
Calendar day other than a Saturday or a Sunday, or FRB legal holidays - Answers Business Day definition?
-Passbook, certificate
-accompanied by special instructions
-consists of more than a single thickness of paper
-not preprinted or post encoded w/MICR ink - Answers Noncash Items?
Bank by which a check is payable
Which the check is sent for payment or collection - Answers Paying Bank
Bank that creates a substitute check - Answers Reconverting Bank
Bank that removes the original check from the check collection process
Non-bank that removes original check from the check collection process
-1st bank that transfers, presents or returns in lieu of original check - Answers Truncating Bank
New accounts
Large deposits (greater thank 5k)
Re-deposit checks
Deposits to accounts that are repeatedly overdrawn
Reasonable cause to doubt the collection of check
Checks deposited during emergency conditions - Answers Exceptions for availability of funds?
UCC 3-302
-took item in good faith
-took item for value
-without notice item is OVERDUE or has been dishonored
-without notice signature was unauthorized or item altered
-without knowledge of claims against it - Answers Holder in Due Course: What are the 5 criteria's to
meet these requirements?
90 days
UCC 3-304 - Answers Check is Overdue?
You can enforce item against the drawer-directly back to drawer - Answers Benefit to having a HIDC
status?
Blank-Payee signs exactly how it is on the front of the check
Special-Pay to the order of
Restrictive-For deposit only
Anomalous- Signed by someone other than the holder or transferor of instrument. - Answers What are
the UCC Indorsements?
1762-Paying bank is in best position to detect forged drawers signature.
So they should bear the loss
UCC presentment warranties sections 3-4127a & 4-208a - Answers Price vs. Neal
UCC 3-416 & 4-207 - Answers What law does Transfer Warranties fall under?
-Warrantor is a person entirely to enforce the instrument
-All signatures on the instrument are authentic and authorized
-Instrument has not been altered
-Instrument not subject to defense or claim
-Warrantor has no knowledge of any insolvency proceeding with respect to maker
, -For remotely created consumer item, person on whose account the item is drawn authorized item and
amount for which the item is drawn - Answers What makes a UCC Transfer Warrantie?
-Person obtaining payment and previous transferor, at the time of presentment warrants they are
-entitled to enforce draft
-item not altered
-Warrantor has no knowledge that signature of the purported drawer of the draft is unauthorized
-remotely created consumer item, person authorized amount and account drawn off of - Answers What
makes it a UCC Presentment Warranty?
Business day on which office of bank is open to public for substantially ALL banking functions - Answers
Banking Day definition?
Calendar day other than a Saturday or a Sunday, or FRB legal holidays - Answers Business Day definition?
-Passbook, certificate
-accompanied by special instructions
-consists of more than a single thickness of paper
-not preprinted or post encoded w/MICR ink - Answers Noncash Items?
Bank by which a check is payable
Which the check is sent for payment or collection - Answers Paying Bank
Bank that creates a substitute check - Answers Reconverting Bank
Bank that removes the original check from the check collection process
Non-bank that removes original check from the check collection process
-1st bank that transfers, presents or returns in lieu of original check - Answers Truncating Bank
New accounts
Large deposits (greater thank 5k)
Re-deposit checks
Deposits to accounts that are repeatedly overdrawn
Reasonable cause to doubt the collection of check
Checks deposited during emergency conditions - Answers Exceptions for availability of funds?
