National Check Payments Certification (NCP)
Questions with Correct Answers
What is the purpose of Reg CC - -To implement to Expedited Funds Availability Act
and the Check 21
What did Check 21 Act do - -Faciliate check truncation by authorizing substitue
checks, Foster innovation in the check collection system without madating receipt of
checks in electronic form, Improve the overall efficiency of the Nations Payments system.
What is the purpose of the FFIEC? - -Prescribe uniform principles, standards, and
report forms for the federal examination of
financial institutions by:
Board of Governors of the Federal Reserve System (FRB)
Federal Deposit Insurance Corporation (FDIC)
National Credit Union Administration (NCUA)
Office of the Comptroller of the Currency (OCC), and
Consumer Financial Protection Bureau (CFPB)
What is the purpose of the Uniform Commercial Code? - -Simplify, clarify, and
modernize the law governing commercial transactions
Permit the continued expansion of commercial practices through custom, usage, and
agreement of the parties
Make uniform the law among the various jurisdictions.
What do the provisions of Article 3 cover - -Negotiable Instruments
In the event of inconsistent provisions, which check rules or
, regulations prevail? - -In general, Federal law preempts State law in cases of
inconsistency -
What options are available in the U.S. for image exchange
rules coverage? - -Either Federal Reserve or Private Sector Rules (Clearing House or
unique agreement) options
exist for image exchange rules coverage in the U.S.:
According to the Federal Reserve Operating Circular No. 3
(OC3), what items are eligible for image exchange? - -The Federal Reserve Banks
Operating Circular No. 3 (OC3) outlines eligibility for both paper
and image cash letters in terms of cash items or non-cash items:
Does Check 21 provide legal rules or address check image
exchanges between banks? - -No. Check 21 only provides legal recognition and
equivalency of substitute checks. Additional
agreements and/or rules are required for image exchanges. The Act does not govern image
exchanges, and therefore image exchanges still need to be performed under agreement
between the parties.
What are the ECCHO Rules? - -ECCHO Rules are private sector clearinghouse rules
which apply to the exchange of electronic
check transactions between ECCHO Member financial institutions.
When converting a check to an ARC, POP, or BOC
transaction, what are the authorization requirements? - -Authorization
Requirements:
ARC: Notice must be provided to Receiver
POP: Authorization must be on the receipt signed at time of purchase
Questions with Correct Answers
What is the purpose of Reg CC - -To implement to Expedited Funds Availability Act
and the Check 21
What did Check 21 Act do - -Faciliate check truncation by authorizing substitue
checks, Foster innovation in the check collection system without madating receipt of
checks in electronic form, Improve the overall efficiency of the Nations Payments system.
What is the purpose of the FFIEC? - -Prescribe uniform principles, standards, and
report forms for the federal examination of
financial institutions by:
Board of Governors of the Federal Reserve System (FRB)
Federal Deposit Insurance Corporation (FDIC)
National Credit Union Administration (NCUA)
Office of the Comptroller of the Currency (OCC), and
Consumer Financial Protection Bureau (CFPB)
What is the purpose of the Uniform Commercial Code? - -Simplify, clarify, and
modernize the law governing commercial transactions
Permit the continued expansion of commercial practices through custom, usage, and
agreement of the parties
Make uniform the law among the various jurisdictions.
What do the provisions of Article 3 cover - -Negotiable Instruments
In the event of inconsistent provisions, which check rules or
, regulations prevail? - -In general, Federal law preempts State law in cases of
inconsistency -
What options are available in the U.S. for image exchange
rules coverage? - -Either Federal Reserve or Private Sector Rules (Clearing House or
unique agreement) options
exist for image exchange rules coverage in the U.S.:
According to the Federal Reserve Operating Circular No. 3
(OC3), what items are eligible for image exchange? - -The Federal Reserve Banks
Operating Circular No. 3 (OC3) outlines eligibility for both paper
and image cash letters in terms of cash items or non-cash items:
Does Check 21 provide legal rules or address check image
exchanges between banks? - -No. Check 21 only provides legal recognition and
equivalency of substitute checks. Additional
agreements and/or rules are required for image exchanges. The Act does not govern image
exchanges, and therefore image exchanges still need to be performed under agreement
between the parties.
What are the ECCHO Rules? - -ECCHO Rules are private sector clearinghouse rules
which apply to the exchange of electronic
check transactions between ECCHO Member financial institutions.
When converting a check to an ARC, POP, or BOC
transaction, what are the authorization requirements? - -Authorization
Requirements:
ARC: Notice must be provided to Receiver
POP: Authorization must be on the receipt signed at time of purchase
