Credit Union Official Checks Overview
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Questions and Answers

How many Official Checks can be issued for free within a calendar month?

  • 1
  • 3 (correct)
  • 10
  • 5

    • Official Checks can be made payable to cash.

    False

    What happens to unnegotiated Official Checks after 3 years?

    They are escheated to the state.

    Official Checks are valid for ________ calendar days.

    <p>90</p> Signup and view all the answers

    Match the following check attributes with their descriptions:

    <p>Official Checks = Cannot be made payable to Cash Stale dated Checks = Considered stale after 90 days Stop Payments = Only placed as exceptions Escheatment = Occurs after 3 years of unnegotiated checks</p> Signup and view all the answers

    What must be verified before issuing Official Checks?

    <p>Signature</p> Signup and view all the answers

    Members are notified by letter after 90 days for unnegotiated checks.

    <p>True</p> Signup and view all the answers

    What is the maximum number of Official Checks that can be processed in a month for free?

    <p>3</p> Signup and view all the answers

    Members can place stop payments on official checks under any circumstances.

    <p>False</p> Signup and view all the answers

    What form must members complete to initiate a stop payment on an official check?

    <p>Declaration of Loss (Exchange Items) form</p> Signup and view all the answers

    Branch employees may disburse Official Checks for phone requests if ___ is performed.

    <p>MAAP</p> Signup and view all the answers

    Match the steps involved in processing an official check:

    <p>A = Verify sufficient funds B = Run OFAC on the payee C = Create a MARS case D = Debit the account in Symitar</p> Signup and view all the answers

    What must branch employees ask members to do when completing a transaction receipt?

    <p>Sign the transaction receipt using a signature pad</p> Signup and view all the answers

    What is the purpose of retaining signed copies of the official check's transaction receipts?

    <p>For daily balancing</p> Signup and view all the answers

    An override is not required if the official check amount exceeds the employee’s limit.

    <p>False</p> Signup and view all the answers

    What must employees confirm about the Official Check before proceeding with the Declaration of Loss?

    <p>The check has not been reconciled, reissued, or escheated</p> Signup and view all the answers

    Second-party statements do not require manager approval for a Declaration of Loss.

    <p>False</p> Signup and view all the answers

    What type of form must be filled out for a Declaration of Loss?

    <p>Declaration of Loss form</p> Signup and view all the answers

    Employees must wait ___ days after the original issue date before the Credit Union can reissue the check.

    <p>90</p> Signup and view all the answers

    Which option is NOT a step required to reprint (reissue) an Official Check through Symitar?

    <p>Discuss the issue with the payee</p> Signup and view all the answers

    Exceptions to the reissuance process are granted automatically by the manager.

    <p>False</p> Signup and view all the answers

    What check type should be selected when filling out the Declaration of Loss form?

    <p>Cashiers Check</p> Signup and view all the answers

    Match the steps to reissue an Official Check with their corresponding actions:

    <p>Click EASE OpCon Self Service = Access the reissuance section Enter the check number = Provide the required check details Click Submit = Initiate the reissue process Check your email = Receive confirmation of the reissue</p> Signup and view all the answers

    Which of the following checks can be reissued?

    <p>A check that was issued by my department and is still active</p> Signup and view all the answers

    Checks can be reissued if they are from any department.

    <p>False</p> Signup and view all the answers

    What is the maximum duration after which a check cannot be reissued?

    <p>4 days</p> Signup and view all the answers

    Unused check stock should be placed in the ______ during the branch closing process.

    <p>vault</p> Signup and view all the answers

    Match the following check stock management activities with their descriptions:

    <p>Check printer loading = Load during working hours Sealing new stock = Place in sealed envelopes or bags Monthly auditing = Count and record checks supplies Dual control = Open stock with two employees present</p> Signup and view all the answers

    What is the purpose of verifying Official Checks in the Symitar Check Manager?

    <p>To ensure accurate records of issued checks</p> Signup and view all the answers

    Visual verification of an Official Check is sufficient for ensuring authenticity.

    <p>False</p> Signup and view all the answers

    What should be done if newly arrived check stock is opened?

    <p>It should be done under dual control.</p> Signup and view all the answers

    Which feature is NOT required on the front of the check?

    <p>Endorsement lines</p> Signup and view all the answers

    The back of the check includes a security warning.

    <p>False</p> Signup and view all the answers

    What must be included in the disclaimer above the endorsement lines?

    <p>Must be endorsed by all parties</p> Signup and view all the answers

    The center bottom of the front of the check must include a security __________.

    <p>warning</p> Signup and view all the answers

    Match the following components with their corresponding locations on the check:

    <p>Authorized signature(s) = Front A 5-line disclosure = Back Security features notice = Front Endorsement lines = Back</p> Signup and view all the answers

    Which of the following should be included in the search for check screen?

    <p>Navigate &gt; Accounting &gt; Check Manager</p> Signup and view all the answers

    The front side of the check must include the Credit Union's web address.

    <p>True</p> Signup and view all the answers

    What is the required action for the endorsement on the back of the check?

    <p>All parties must endorse</p> Signup and view all the answers

    What prefix is used for check numbers issued by the Accounting department?

    <p>01</p> Signup and view all the answers

    If a check number is not valid, Check Manager displays the amount and payee information.

    <p>False</p> Signup and view all the answers

    What does Escheated indicate regarding check funds?

    <p>The funds are being sent to the state as unclaimed property.</p> Signup and view all the answers

    Employees must process the transaction in Symitar by entering KD GL and the check's dollar amount followed by the payee's name and ______.

    <p>address</p> Signup and view all the answers

    Match the following check statuses with their descriptions:

    <p>Issued = The check has been processed and is active. Escheated = Funds are sent to the state as unclaimed property. Cancelled = The check is voided and cannot be cashed. Pending = The check is awaiting processing.</p> Signup and view all the answers

    What should be included in the MARS cases assigned to Operations – General Queue?

    <p>The GL to be used for processing the offset</p> Signup and view all the answers

    Branch employees may disburse Official Checks for phone requests without any verification.

    <p>False</p> Signup and view all the answers

    What should employees insert in the envelope along with the Official Check when mailing it to the member?

    <p>A letter for the member</p> Signup and view all the answers

    Study Notes

    Official Checks

    • Credit Union offers Official Checks, debiting accounts at disbursement. Funds guaranteed unless a stop payment is placed.
    • First 3 Official Checks per calendar month are free (additional fees after).
    • Checks payable to individuals, businesses, or entities. OFAC verification required for non-members. Cannot be payable to cash, bearer, or for deposit only; payee field cannot be blank.
    • Checks valid for 90 calendar days. Uncashed checks after 90 days are considered stale-dated.
    • Payment Services reviews uncashed checks and notifies members. Members can reissue or have funds credited back. Uncashed checks escheated to the state after 3 years.
    • Liability provision applies if the Credit Union declines a check payment; exceptions only for stop payments (requiring member notification).

    Official Check Order Process

    • Members request Official Checks in person, by phone, mail, or secure email. Employees follow specific steps.
    • A verification process in place to ensure sufficient funds: Verify ID using standard procedures; run OFAC; Create a MARS case. Crediting account in Symitar.
    • Procedures for issuing check: Include steps to verify sufficient funds, OFAC check, creating the case, debiting account, & assigning tasks to Operations.
    • Handling documents: Attach/index documents, and record the transaction.
    • Disbursing checks: Employees using transaction codes (KD, KO); Limit to employee's account; Members endorse via signature pad (confirming 90-day requirement; the receipt of the check; accurate check info.).
    • Employee responsibilities include providing checks, stubs, and transaction receipts & maintaining the signed copies.

    Official Check Stop Payments

    • Stop payments only valid if a check is lost, stolen, destroyed, or mutilated. Members must fill out a Declaration of Loss form (available in PDF/DocuSign/Symitar); confirmation using a IC feature in Symitar is also required.
    • Additional risk with third party indemnification. Large companies may result in double payments.
    • Case-by-case decisions regarding stop payments; manager/supervisor approval needed for cases that are not routine; consideration of member relationships and check values.
    • Members must wait 90 days before the Credit Union can reissue a check.

    Reissuing Official Checks

    • To reissue a check, the status in OpCon Self Service must be changed to "Not Issued".
    • Confirmation emails sent;
    • Checks that cannot be reissued include: non-existent check numbers; issued more than 4 days; status other than "Issued"; not issued by the right department.
    • Contact Symitar support if encountering problems.

    Safeguarding Official Check Stock

    • Each branch maintains an inventory of Official Checks.
    • Checks are loaded into the check printer during working hours; Excess checks stored in vault or locked cabinet; Unused stock removed during closing.
    • Newly arrived checks are stored in sealed envelopes/bags (25, 50 or 100 in each envelope); signed, and dated by two employees;
    • Checks stored securely until auditing.

    Auditing Official Check Stock

    • Monthly stock audit during cash and negotiable items audit.
    • Official checks must be counted, including lowest and highest numbers, and the total count of checks.
    • Sealed and initialed envelopes do not require opening for audit if they contain no signs of tampering.

    Identifying Official Checks

    • Verify Official Checks both visually and in Symitar Check Manager;
    • Front of checks must show brand names, addresses, toll-free & web info.; Pay, and security warning.
    • Back of check must include a 5-line disclosure, disclaimer, and 2 endorsement lines; authorized signatures;
    • Official Checks are recorded into Symitar Check Manager.

    Operations: Printing Official Checks using a GL

    • Case information needs to be provided to Operations Services; this includes the requester's name, address, amount, GL, and offsetting GL.
    • Employees must fill out the transaction information in Symitar. Inserted in the letter with the check in an envelope and mailed.

    Official Checks: Vendor Inventory Control

    • Departments/branches use the ASB link on The Hub to order Official Checks.
    • Marketing confirms the appropriateness of orders;
    • ASB prepares; Departments/branches sign packing slips, report discrepancies.
    • Ops Reconciles discrepancies noted in the email.

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    Chevron Federal Credit Union Official Checks PDF

    Description

    This quiz covers the key aspects of Official Checks offered by Credit Unions, including ordering processes, fees, and policies regarding uncashed checks. Understand the verification requirements and the validity period of checks to ensure compliance with Credit Union regulations.

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