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Exam CRCM topic 1 question 167 discussion

Actual exam question from ABA's CRCM
Question #: 167
Topic #: 1
[All CRCM Questions]

By sending an item to a Reserve Bank, a sender:

  • A. Never authorizes the Reserve Bank to handle the item based on this regulation and the Reserve Bank's circulars
  • B. Warranties for electronic items that are substitute checks
  • C. Warrants to each Reserve Bank handling the item that it has good title, that it is entitled to enforce the item, that the item has not been materially altered, and that the item bears all endorsements applied by parties that previously handled the item in paper or electronic form
  • D. The sender makes all of the warranties set forth in the Uniform Commercial Code (UCC) as if the item were subject to the UCC and makes all of the Regulation CC warranties as if the electronic item were a paper item subject to that regulation
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Suggested Answer: CD 🗳️

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Dex24
6 months, 2 weeks ago
C is correct. Page 613.
upvoted 1 times
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Cam22
8 months, 3 weeks ago
Selected Answer: C
When sending an item to a Reserve Bank, the sender warrants to each Reserve Bank handling the item that it has good title, is entitled to enforce the item, the item has not been materially altered, and it bears all endorsements applied by parties that previously handled the item in paper or electronic form. This is in accordance with regulations and circulars governing the handling of items through Reserve Banks.
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