Official Checks Policy and Procedures
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Questions and Answers

How many Official Checks are free for members in a calendar month?

  • 1
  • 3 (correct)
  • 2
  • 4

    • Official Checks can be made payable to 'Cash'.

    False

    What happens to Official Checks that are not negotiated within 90 days?

    They are considered stale dated.

    After 3 years, unnegotiated checks are __________ to the state.

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

    Match the following terms related to Official Checks with their definitions:

    <p>Stale Dated = Considered invalid if not negotiated within 90 days Stop Payment = An exception placed to prevent cashing a check Escheated = Unnegotiated checks become property of the state after 3 years Payee = The person or entity to whom the check is made payable</p> Signup and view all the answers

    Which of the following is NOT allowed for Official Checks?

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

    Members can request Official Checks via secure email.

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

    How are accounts affected when Official Checks are disbursed?

    <p>Accounts are debited at the time of disbursement.</p> Signup and view all the answers

    Which step is NOT part of the process for disbursing an Official Check?

    <p>Run a background check on the member</p> Signup and view all the answers

    Members can place stop payments on Official Checks without any restrictions.

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

    What must members complete to place a stop payment on an Official Check?

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

    If an Official Check is being disbursed, the check amount must be within the employee's ______ limit.

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

    Match the procedures with their steps in the disbursement of an Official Check:

    <p>A. Sufficient funds verification = 1. Ensure funds cover the check B. OFAC run on payee = 2. Check compliance for non-members C. MARS case creation = 3. Document the request D. Account debit in Symitar = 4. Post transaction in system</p> Signup and view all the answers

    What should branch employees check before proceeding with the disbursement?

    <p>Member's signature on the transaction receipt</p> Signup and view all the answers

    A signed copy of the check is not required for daily balancing.

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

    What is required if an employee needs to override the check limit during disbursement?

    <p>An override is required</p> Signup and view all the answers

    What must employees do in Symitar before proceeding with a Declaration of Loss?

    <p>Confirm the Official Check has not been reconciled, reissued, or escheated.</p> Signup and view all the answers

    The Declaration of Loss form can only be generated in PDF format.

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

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

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

    The check type that must be selected when entering the check number in Symitar is ______.

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

    Match the following steps for reissuing an Official Check with their corresponding actions:

    <p>Click EASE OpCon Self Service = Access the OpCon module Enter the check number = Input the specific check Click Submit = Initiate the reissue process Check your email for confirmation = Receive confirmation of reissue</p> Signup and view all the answers

    Which is NOT a reason for additional risk when using third-party indemnification?

    <p>If the payee is a bank.</p> Signup and view all the answers

    Exceptions to the rules regarding Declaration of Loss are common and easily granted.

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

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

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

    Which checks cannot be reissued?

    <p>Checks with check numbers that do not exist</p> Signup and view all the answers

    Checks issued by your department can be reissued after 4 days.

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

    What should branch employees do with unused stock during the branch closing process?

    <p>Pull unused stock from the printer and place it in the vault or locked cabinet.</p> Signup and view all the answers

    Checks with a status other than ______ cannot be reissued.

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

    What is the required quantity for placing newly arrived Official Checks in envelopes or bags?

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

    Match the following actions with their descriptions regarding Official Checks:

    <p>Visual Verification = Reviewing front and back of a check to confirm authenticity Symitar Check Manager = System used for logging issued Official Checks Monthly Audit = Counting and recording of check stock supplies Secure Storage = Keeping checks in a vault or locked cabinet when not in use</p> Signup and view all the answers

    It is necessary to open sealed bags or envelopes containing Official Checks during an audit.

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

    If you receive a Check Not Found or Can’t Reissue message, whom should you contact?

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

    Which of the following elements must appear on the front of the check?

    <p>Credit Union’s website</p> Signup and view all the answers

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

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

    What phrase 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 security details on the back of the check are enclosed in a __________.

    <p>text box</p> Signup and view all the answers

    Which of the following is NOT a requirement on the front of the check?

    <p>Five lines of disclosure</p> Signup and view all the answers

    Match the elements with their location on the check.

    <p>Authorized signatures = Front of the check Pre-printed stock number = Back of the check Security warning = Front of the check Endorsement lines = Back of the check</p> Signup and view all the answers

    What action should you take to access the Search for Check screen in Symitar Check Manager?

    <p>Both A and B</p> Signup and view all the answers

    What must you observe regarding the number of authorized signatures on a check?

    <p>It must conform to policy.</p> Signup and view all the answers

    What should you do if the check number entered is not valid?

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

    Check numbers for checks issued by Accounting begin with the prefix 00.

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

    What does Escheated indicate in the context of check status?

    <p>The Credit Union is sending the funds to the state as unclaimed property.</p> Signup and view all the answers

    Checks issued by any department other than Accounting begin with the prefix ______.

    <p>00</p> Signup and view all the answers

    Match the following prefixes with their respective issuing departments:

    <p>01 = Accounting 00 = Other Departments</p> Signup and view all the answers

    While processing an official check for a closed membership, which of the following must be included in the request?

    <p>Dollar amount of the check</p> Signup and view all the answers

    The comment 'CHK REQ ATM EXCEP' is used when processing a transaction in Symitar for an official check.

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

    Who is responsible for maintaining the paper stock inventory for official checks?

    <p>American Solutions for Business (ASB)</p> Signup and view all the answers

    Study Notes

    Official Checks

    • Credit Union offers Official Checks; funds debited at disbursement
    • Payees guaranteed funds unless stop payment placed
    • First 3 checks per calendar month free; fee schedule applies after
    • Checks payable to individuals, businesses, or entities
    • Non-member checks require OFAC verification
    • Cannot be payable to cash, bearer, or for deposit only
    • Payee field cannot be blank
    • Checks valid for 90 calendar days; stale-dated after
    • Payment Services reviews unnegotiated checks
    • Members may reissue or have funds credited back
    • Unnegotiated checks escheated to state after 3 years
    • Credit Union liable for unfulfilled checks (stop payments exceptions only)
    • Members informed of stop payment at time of disbursal

    Official Check Order Process

    • Members request checks in person, by phone, mail, or Secure Email
    • Employees follow these steps
      • Verify sufficient funds & OFAC status of payee
      • Create case in MARS system, and add OFAC data (if applicable)
      • Debit the account
      • Assign to Operations for printing/mailing if needed
      • Documents are attached/indexed
      • Employee prints/mails/disburses the checks
      • Employee must use transaction codes (KD-CFCU or KO-Spectrum)
      • Employees must confirm 90 day stop payment policy
      • Employee provides checkstub and receipt (signed copies for daily balancing)

    Official Check Stop Payments

    • Stop payments for lost/stolen/destroyed checks allowed
    • Need completed Declaration of Loss form
    • Confirm official check has not been reconciled, reissued, or escheated using IC feature in Symitar
    • Declaration of Loss form available in PDF and DocuSign/Symitar
    • Third-party verification carries additional risk (e.g., mortgage or phone companies)
    • Second-party statements and indemnifications reviewed on case-by-case basis
    • Exceptions rare; granted based on member relationship and check amount
    • Typically, 90-day wait before reissuing

    Reissuing Official Checks

    • Check status must be reset to "Not Issued" in OpCon Self Service
    • Employee accesses Reissue Checks button and inserts check number
    • Prints confirmation email
    • Check numbers, check existence, issuance time (more than 4 days), status must be verified for reissuance

    Safeguarding Official Checks

    • Check Stock handled by branch employees
    • Checks loaded into printer during hours; excess stored in vault or locked cabinet.
    • Unused checks moved to vault/locked cabinet during closing process
    • Checks arrive in sealed envelopes (25,50, or 100 per)
    • Envelops signed & dated
    • Secure storage, vault/locked cabinet

    Auditing Official Checks

    • Monthly audit of working/vault supply
    • Audit tracks starting & ending numbers and total on hand
    • Sealed, signed envelopes/bags can be skipped for auditing if all conditions are met

    Identifying Official Checks

    • Two verification methods (visual & Symitar Check Manager)
    • Verify official checks in Symitar Check Manager (visual verification alone insufficient)
    • Official Checks front: Credit Union details, Pay line, security warning
    • Official Checks back: Authorization details, 5-line disclosure, disclaimer, 2 endorsement lines

    Operations: Printing Official Checks using a GL

    • Operations handles printing/mailing for closed accounts
    • Includes: Check Request, member name, address, dollar amount, offset GL, and a cover letter for the member.
    • Employees follow steps in Symitar (KD GL entry, check amount, recipient info, GL input, comment: CHK REQ ATM EXCEP., generate letter, insert & mail)

    Official Checks: Vendor Inventory Control

    • American Solutions for Business (ASB) handles inventory control
    • Departments submit orders through ASB
    • ASB prepares the stock and ships the order to the requesting department
    • The receiving department reports discrepancies to ASB
    • Signed acknowledgment of receipt & discrepancies noted in email
    • Operations files the documentation

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    Related Documents

    Chevron Federal Credit Union Official Checks PDF

    Description

    This quiz covers the policies and procedures related to official checks offered by the Credit Union. Learn about the verification process, issuing guidelines, and member responsibilities regarding official checks. Test your knowledge on the requirements and limitations associated with these financial instruments.

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