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 (B)

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 (D)</p> Signup and view all the answers

Members can request Official Checks via secure email.

<p>True (A)</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 (D)</p> Signup and view all the answers

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

<p>False (B)</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 (B)</p> Signup and view all the answers

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

<p>False (B)</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. (C)</p> Signup and view all the answers

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

<p>False (B)</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. (C)</p> Signup and view all the answers

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

<p>False (B)</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 (B)</p> Signup and view all the answers

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

<p>False (B)</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 (C)</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 (B)</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 (B), Security warning (D)</p> Signup and view all the answers

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

<p>False (B)</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 (B)</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 (D)</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. (A)</p> Signup and view all the answers

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

<p>False (B)</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 (B)</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 (A)</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

Flashcards

Official Checks

Checks issued by a credit union, guaranteeing funds unless a stop payment is in place.

Stop Payment

A request to halt payment on an official check.

Uncashed Checks

Official checks that haven't been cashed within 90 days.

Stale Dated Checks

Uncashed official checks that are more than 90 days old.

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First 3 Official Checks

Free of charge during a calendar month.

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OFAC Verification

Checks made payable to non-members are verified against a sanctions list to prevent financing illegal activity.

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Issuing Official Checks

Credit union's obligation to pay official checks if they are valid and no stop payment exists.

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Reissuing Official Checks

Members can request to reissue a lost or uncashed official check.

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MAAP to Level 3

A process for verifying sufficient funds and other criteria before disbursing an official check.

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OFAC Check Verification

Checking the payee against the Office of Foreign Assets Control (OFAC) sanctions list if the payee isn't a member.

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MARS Case

A case created in the system to track the official check request.

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Official Check Stop Payments

Members can't stop payments on official checks unless the check is lost, stolen, destroyed, or mutilated; a replacement is issued if desired.

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Transaction Receipt

A document signed by the member acknowledging receipt of the official check and agreeing to the 90-day stop-payment policy.

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Declaration of Loss

A form completed by the member to request a stop payment on a lost, stolen, destroyed or mutilated official check.

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Official Check Disbursement

The act of issuing an official check; includes steps such as verifying funds, handling OFAC, recording transactions and mailing.

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Record Keeping (Official Checks)

Maintaining signed copies of transaction receipts, stubs, and check copies for daily balancing and compliance.

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Declaration of Loss form

A document used to report a lost or missing check.

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Symitar

A software system used for managing checks.

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Official Check Reconciliation

Process of verifying the status of an official check.

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IC feature in Symitar

Functionality in Symitar to confirm check status (not reconciled, reissued, or escheated).

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OpCon Self Service

Module in The Hub for resetting check status to Not Issued.

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90 days after original issue

The minimum waiting period required before an official check can be reissued.

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Second/Third-party indemification

Risk assessment (additional) for individual v. company-paid checks; requires manager approval.

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Check Front Security

The front of an official check must display several security features, including the credit union's brand name, address, contact information, a security warning, and authorized signatures.

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Check Back Disclosure

The back of an official check includes a 5-line disclosure, a disclaimer about endorsement, endorsement lines, security details, and a stock number.

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Check Verification

To ensure an official check is valid, you can verify it in Symitar Check Manager by navigating through various menus and using specific transaction codes.

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Endorsement Requirement

All parties involved in a transaction must endorse an official check before it can be cashed or deposited.

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Security Features

Official checks include various security features on both the front and the back, designed to protect against fraud and ensure authenticity.

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Official Check Stock Number

Each official check carries a unique stock number, printed on the back, for easy identification and tracking.

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Authorized Signatures

The front of an official check must contain authorized signatures that meet specific policy requirements, including the number of signatures and authorized signers.

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Check Manager Access

You can access the Search for Check screen in Symitar Check Manager by navigating through different menus or using specific transaction codes, like IC.

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Official Check Reissuance

Official checks cannot be reissued if they are missing, older than 4 days, have a status other than 'Issued', or were not issued by your department.

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Check Number Prefix

A prefix that precedes the check number, identifying the issuing department (e.g., '01' for Accounting).

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Valid Check Number

A check number that exists in the system, allowing access to amount and payee information.

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Official Check Safeguarding

Branch employees must follow specific procedures to safeguard official checks, including securing them in vaults or locked cabinets, using dual control for new stock, and sealing and signing envelopes for storage.

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Escheated Check

A check where the credit union sends the funds to the state as unclaimed property.

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Official Check Auditing

The working and vault supplies of official checks are counted and audited monthly during the cash and negotiable items audit. Sealed envelopes containing checks don't need to be opened if they're initialed by two employees and show no signs of tampering.

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Issued Check Status

Indicates a check that has been processed and sent to the payee.

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Official Check Verification

Verifying the authenticity of official checks involves visual and Symitar Check Manager checks. Visual inspection alone is not enough.

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Check Request

A request for an official check to be printed and mailed.

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Symitar Check Manager

A system that records all issued official checks and can be used to verify their authenticity.

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KD GL

Specific General Ledger used for processing official check transactions.

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Official Check Visual Verification

Inspecting the front and back of an official check for visual markers, which should be reviewed alongside verification in Symitar Check Manager.

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Check Not Found or Can't Reissue Message

These messages indicate a problem with reissuing an official check. Contact Symitar Support if you receive either of these messages.

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Official Check Stock

Each branch keeps a supply of official checks which must be properly secured and audited.

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Record Not Found

Error message displayed when a check number is invalid or does not exist in the system.

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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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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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