NATIONAL CHECK PAYMENTS CERTIFICATION
PRACTICE EXAM 2026
◉ Check is Overdue? Answer: 90 days
UCC 3-304
◉ Benefit to having a HIDC status? Answer: You can enforce item
against the drawer-directly back to drawer
◉ What are the UCC Indorsements? Answer: 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.
◉ Price vs. Neal Answer: 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
,◉ What law does Transfer Warranties fall under? Answer: UCC 3-
416 & 4-207
◉ What makes a UCC Transfer Warrantie? Answer: -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
◉ What makes it a UCC Presentment Warranty? Answer: -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
, ◉ Banking Day definition? Answer: Business day on which office of
bank is open to public for substantially ALL banking functions
◉ Business Day definition? Answer: Calendar day other than a
Saturday or a Sunday, or FRB legal holidays
◉ Noncash Items? Answer: -Passbook, certificate
-accompanied by special instructions
-consists of more than a single thickness of paper
-not preprinted or post encoded w/MICR ink
◉ Paying Bank Answer: Bank by which a check is payable
Which the check is sent for payment or collection
◉ Reconverting Bank Answer: Bank that creates a substitute check
◉ Truncating Bank Answer: 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
◉ Exceptions for availability of funds? Answer: New accounts
PRACTICE EXAM 2026
◉ Check is Overdue? Answer: 90 days
UCC 3-304
◉ Benefit to having a HIDC status? Answer: You can enforce item
against the drawer-directly back to drawer
◉ What are the UCC Indorsements? Answer: 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.
◉ Price vs. Neal Answer: 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
,◉ What law does Transfer Warranties fall under? Answer: UCC 3-
416 & 4-207
◉ What makes a UCC Transfer Warrantie? Answer: -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
◉ What makes it a UCC Presentment Warranty? Answer: -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
, ◉ Banking Day definition? Answer: Business day on which office of
bank is open to public for substantially ALL banking functions
◉ Business Day definition? Answer: Calendar day other than a
Saturday or a Sunday, or FRB legal holidays
◉ Noncash Items? Answer: -Passbook, certificate
-accompanied by special instructions
-consists of more than a single thickness of paper
-not preprinted or post encoded w/MICR ink
◉ Paying Bank Answer: Bank by which a check is payable
Which the check is sent for payment or collection
◉ Reconverting Bank Answer: Bank that creates a substitute check
◉ Truncating Bank Answer: 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
◉ Exceptions for availability of funds? Answer: New accounts
