Credit Union Official Checks Overview
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Questions and Answers

What happens to an Official Check if it is not negotiated within 90 days?

  • It is automatically reissued to the payee.
  • It is considered stale dated. (correct)
  • It can be cashed at any time.
  • It is voided and returned to the Credit Union.

    • What is the maximum number of Official Checks a member can request for free in a calendar month?

  • 5
  • 10
  • 4
  • 3 (correct)

    • Which of the following cannot be a payee for an Official Check?

  • Cash (correct)
  • A business entity
  • A government agency
  • A natural person

    • What action is taken if an Official Check remains unnegotiated for three years?

    <p>It is escheated to the state.</p> Signup and view all the answers

    How can members request Official Checks?

    <p>By phone, by mail, or in person</p> Signup and view all the answers

    What happens if a member wants to stop payment on an Official Check?

    <p>A stop payment can be placed as an exception.</p> Signup and view all the answers

    What is a requirement when filling out the payee field on an Official Check?

    <p>It must contain a valid entity name.</p> Signup and view all the answers

    What occurs if a member requests to reissue a stale dated Official Check?

    <p>They may be credited back the funds instead.</p> Signup and view all the answers

    What is the first step in processing the official check?

    <p>Verify there are sufficient funds to cover the check.</p> Signup and view all the answers

    Which action is necessary for checks disbursed over an employee's limit?

    <p>An override will be required.</p> Signup and view all the answers

    What must branch employees ensure regarding transaction receipts?

    <p>Members must sign the transaction receipt using a signature pad.</p> Signup and view all the answers

    Under which circumstance may members place stop payments on official checks?

    <p>If the check has been lost, stolen, destroyed, or mutilated.</p> Signup and view all the answers

    What does a branch employee need to retain for daily balancing?

    <p>The check stub and the signed copies of the documentation.</p> Signup and view all the answers

    If a member wishes to place a stop payment on an official check, what must they complete?

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

    Which of the following actions is part of documenting the official check process?

    <p>Noting any significant occurrences in the system.</p> Signup and view all the answers

    Which of the following transaction codes is correct for disbursing a check?

    <p>KD for CFCU.</p> Signup and view all the answers

    What is the first step employees must take before confirming the Official Check's status in Symitar?

    <p>Use the IC feature to confirm the check status</p> Signup and view all the answers

    What is required when discussing second-party statements and third-party indemnification with a supervisor?

    <p>Approval must be documented in case comments</p> Signup and view all the answers

    Which of the following explains a risk associated with indemnification when dealing with large companies?

    <p>Potential for double payment due to lost and reissued checks</p> Signup and view all the answers

    What must the member typically wait before the Credit Union can reissue the check?

    <p>90 days after the original issue date</p> Signup and view all the answers

    Where can employees find the Declaration of Loss form in Symitar?

    <p>In the Forms and Documents section</p> Signup and view all the answers

    Before an Official Check can be reissued through Symitar, what initial action must be completed?

    <p>Reset the check status to Not Issued</p> Signup and view all the answers

    Which of the following is not a necessary component when presenting a Declaration of Loss to the manager?

    <p>A summary of previous claims</p> Signup and view all the answers

    What must employees check after submitting a reissue request for an Official Check?

    <p>Observe their email for a confirmation message</p> Signup and view all the answers

    Which types of checks cannot be reissued?

    <p>Checks not issued by your department</p> Signup and view all the answers

    What should be done with unused Official Checks at the end of the day?

    <p>Place them in the vault or locked cabinet</p> Signup and view all the answers

    What quantities should newly arrived check stock be placed in?

    <p>25, 50, or 100</p> Signup and view all the answers

    Which of the following is NOT a method for verifying the authenticity of Official Checks?

    <p>Auditing financial records</p> Signup and view all the answers

    How often should the supply of Official Checks be counted and recorded?

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

    What must be verified in Symitar Check Manager for all issued Official Checks?

    <p>Check's existence in the system</p> Signup and view all the answers

    When should newly arrived stock be opened under dual control?

    <p>If possible, upon arrival</p> Signup and view all the answers

    What is the protocol if an envelope or bag containing Official Checks is sealed and shows no tampering?

    <p>It can be counted without opening</p> Signup and view all the answers

    What must be included on the front of the check alongside the Credit Union’s name?

    <p>Toll-free number</p> Signup and view all the answers

    Which of the following statements is true regarding the back of the check?

    <p>It must contain a pre-printed stock number.</p> Signup and view all the answers

    What warning must be present on the front of the check?

    <p>Security features included. Details on back.</p> Signup and view all the answers

    What is the purpose of the disclaimer on the back of the check?

    <p>To inform that it must be endorsed by all parties</p> Signup and view all the answers

    Which one of the following is NOT required on the front of the check?

    <p>Number of signatures</p> Signup and view all the answers

    Which step comes first when accessing the Check Manager in Symitar?

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

    What is the primary purpose of the security warning on the front of the check?

    <p>To inform of protective features included</p> Signup and view all the answers

    Which of the following is true about the endorsement lines on the back of the check?

    <p>A disclaimer requires that all parties endorse the check</p> Signup and view all the answers

    What must be done if the Check Manager returns a 'Record Not Found' message?

    <p>Contact your manager or Fraud &amp; Transaction Analysis.</p> Signup and view all the answers

    What does it indicate when a check status is labeled as 'Escheated'?

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

    Which prefix should be used when searching for checks issued by the Accounting department?

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

    What is the first step for employees when processing a transaction for printing an Official Check?

    <p>Process the transaction in Symitar with KD GL.</p> Signup and view all the answers

    Which of the following is NOT required information when requesting a check for a closed membership?

    <p>The member's Social Security number.</p> Signup and view all the answers

    What should be done if you are uncertain of the issuing department when searching for a check number?

    <p>Search both with and without the prefix.</p> Signup and view all the answers

    What information is included in the subject line of a MARS case for check requests?

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

    Which of the following is the last step in processing and mailing an Official Check?

    <p>Mail the check and letter to the member.</p> Signup and view all the answers

    What happens to an Official Check that remains uncashed for 90 days?

    <p>It becomes stale dated.</p> Signup and view all the answers

    Members can request Official Checks to be made payable to 'Cash'.

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

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

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

    Official Checks are guaranteed funds unless a ______ has been placed.

    <p>stop payment</p> Signup and view all the answers

    Match the following terms with their definitions:

    <p>Stale dated = Checks not negotiated within 90 days Reissue = Request to replace an uncashed check Escheat = Transfer of unclaimed money to the state OFAC verification = Compliance check for non-member checks</p> Signup and view all the answers

    Which of the following methods can members use to request Official Checks?

    <p>In-person, by phone, by mail, or through Secure Email</p> Signup and view all the answers

    After three years, unnegotiated Official Checks are returned to the issuer.

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

    What duration are Official Checks valid before they become stale dated?

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

    What action should be taken if the amount exceeds the employee’s limit for disbursing a check?

    <p>Approval from a manager is required</p> Signup and view all the answers

    Members may place stop payments on Official Checks if they simply change their mind.

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

    What must a member complete to request a stop payment on an Official Check?

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

    Branch employees must ensure members sign the transaction receipt using a __________ pad.

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

    Match the following actions with their corresponding step in the Official Check process:

    <p>Verify there are sufficient funds = Step 1 Debit the account in Symitar = Step 5 Document the received item = Step 3 Disburse the check and provide receipt = Step 4</p> Signup and view all the answers

    Which of the following is NOT a required action when documenting the Official Check process?

    <p>Attach the check copy to the account</p> Signup and view all the answers

    Which of the following checks cannot be reissued?

    <p>Checks issued more than 4 days ago</p> Signup and view all the answers

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

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

    The transaction codes for disbursing a check are __________ for CFCU and __________ for Spectrum.

    <p>KD, KO</p> Signup and view all the answers

    All Official Checks should be securely stored in the vault regardless of whether they were issued or not.

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

    What should be done during the branch closing process with unused Official Checks?

    <p>They should be pulled from the printer and placed in the vault or locked cabinet.</p> Signup and view all the answers

    Checks can be counted in quantities of ___, ___, or ___ when placed in sealed envelopes.

    <p>25, 50, 100</p> Signup and view all the answers

    Match the following check security practices with their descriptions:

    <p>Loading Checks = During working hours only Sealing Checks = In quantities of 25, 50, or 100 Visual Verification = Reviewing both front and back Monthly Audit = Recording starting and ending numbers</p> Signup and view all the answers

    What is the primary method for verifying the authenticity of Official Checks?

    <p>Visual verification and Check Manager verification</p> Signup and view all the answers

    It is acceptable to open newly arrived stock of Official Checks without dual control.

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

    What action should be taken if a Check Not Found or Can’t Reissue message is received?

    <p>Contact Symitar Support.</p> Signup and view all the answers

    What is the first step employees must take to confirm the Official Check status in Symitar?

    <p>Select Account Servicing in the dropdown menu</p> Signup and view all the answers

    The member must wait 60 days after the original issue date before the Credit Union can reissue the check.

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

    What must be included when presenting a Declaration of Loss to a manager?

    <p>A printout of the IC screen and a Verification of Deposit</p> Signup and view all the answers

    Employees must use the IC feature in Symitar to confirm the Official Check has not been __________.

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

    Match the processes with their descriptions.

    <p>Confirm Check Status = Use IC feature in Symitar Submit Reissue Request = Click the Submit button in OpCon Present Declaration of Loss = Include IC screen printout Reissue Wait Time = Members wait 90 days</p> Signup and view all the answers

    Which of the following statements is true regarding second-party statements and third-party indemnification?

    <p>They must be discussed with a manager</p> Signup and view all the answers

    Exceptions to the typical protocols for Official Checks are granted frequently.

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

    What is the reissue action that must be completed before reprinting an Official Check?

    <p>Reset checking status to Not Issued in OpCon</p> Signup and view all the answers

    Which of the following must be included on the front of an official check?

    <p>Credit Union's web address</p> Signup and view all the answers

    The back of the check requires a 5-line disclosure at the top.

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

    What statement must be included above the endorsement lines on the back of the check?

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

    The front of the check must include a security warning at the __________.

    <p>center bottom</p> Signup and view all the answers

    What is the requirement for the authorized signatures on the check?

    <p>They must conform to policy regarding number and authorization.</p> Signup and view all the answers

    Match the following features with their locations on an official check:

    <p>Security warning = Front Disclosure statement = Back Endorsement lines = Back Authorized signatures = Front</p> Signup and view all the answers

    What must be present on the back of the check to ensure all parties sign?

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

    The front of the check includes a notice that states 'Security Features included. Details on back.'

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

    What should be entered in the Look For field when searching for a check in Check Manager?

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

    Check Manager will display a message when the entered check number is valid.

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

    What action should be taken if Check Manager returns a 'Record Not Found' message?

    <p>Contact your manager or Fraud &amp; Transaction Analysis.</p> Signup and view all the answers

    Checks issued by Accounting will have a prefix of _____.

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

    Match the following terms with their correct meanings:

    <p>Escheated = Funds sent to the state as unclaimed property Prefix 01 = Checks issued by Accounting Prefix 00 = Checks issued by other departments MARS cases = Requests for checks for closed memberships</p> Signup and view all the answers

    If a check status is labeled as 'Escheated', what should contact Operations Services?

    <p>To retrieve the funds from the state</p> Signup and view all the answers

    When processing an Official Check transaction in Symitar, the GL must always be specified.

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

    What is the first step employees must take in the process of printing an Official Check?

    <p>Enter KD GL in Symitar</p> Signup and view all the answers

    Study Notes

    Official Checks

    • Credit Union offers Official Checks, debiting accounts at disbursement
    • Funds guaranteed unless stop payment placed
    • First three checks per calendar month are free; additional fees apply

    Ordering Official Checks

    • Ordering process involves multiple steps, including verifying funds, OFAC checks, and creating MARS cases.
    • Debit account in Symitar, and assign Operations Services for printing/mailing, if needed.

    Stop Payments

    • Stop payment can only be placed if a check is lost, stolen, destroyed, or mutilated.
    • Members must complete a Declaration of Loss form.
    • Checks must not be reconciled, reissued, or escheat before a stop payment.
    • Members need to wait 90 days before the Credit Union can reissue the check.
    • Exceptions can be granted on a case-by-case basis, subject to management approval.

    Reissuing Checks

    • Reset 'Not Issued' status in OpCon Self Service, before reissuing.
    • Enter check number, email for confirmation.
    • Cannot reissue checks with invalid numbers, issued more than 4 days, status other then issued, or not issued by department.
    • Contact Symitar support if needed.

    Safeguarding Official Check Stock

    • Branch employees load checks into the printer and keep excess stock in a locked vault or cabinet during closing.
    • After receipt, stock is placed in sealed envelopes (25, 50, or 100) and stored safely.
    • Monthly audit of stock, keeping and recording the starting and ending number, and total on hand.
    • Unsealed, initialed, and unaltered envelopes are acceptable for storage.

    Auditing Official Check Stock

    • Check Stock is counted and recorded monthly during the cash and negotiable items audit..
    • Record lowest and highest numbers and total of checks on hand.

    Identifying Official Checks

    • Two methods for verifying Official Checks: visual and Symitar Check Manager verification.
    • Always confirm in Symitar Check Manager.
    • Visual verification involves examining front and back: brand, address, "Pay" location, security warning, and authorized signatures.
    • Back of check includes a 5-line disclosure, endorsement lines, and disclaimer.

    Verification in Symitar Check Manager

    • Access Check Manager within Symitar.
    • Input check number in "look for" field.
    • Valid numbers reveal the amount and payee.
    • Invalid numbers return a 'Record Not Found' message.
    • Contact manager or Fraud & Transactions Analysis if needed.

    Operations: Printing Official Checks using a GL

    • Prints checks for members owed funds, but membership is closed.
    • Cases follow a defined process, including the check request, member name, address, amount, and GL number.
    • Inserts the letter and check in an envelope and sends it by mail using U.S. mail.

    Official Checks: Vendor Inventory Control

    • Checks for issues with paper stock inventory are handled by the vendor, American Solutions for Business (ASB).
    • Orders through The Hub, with Marketing confirming reasonableness.
    • ASB delivers the order, and the receiving department/branch reports discrepancies, signs packing slips, and emails to Operations Services for reconciliation and document filing.

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    Chevron Federal Credit Union Official Checks PDF

    Description

    This quiz covers the essential procedures and policies regarding official checks offered by the Credit Union. It includes topics such as ordering processes, stop payments, and reissuing checks. Understanding these policies is crucial for managing official checks effectively.

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