Official Checks Procedures and Regulations

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Questions and Answers

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

3 (correct)

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

They are automatically credited back to the account

They can be reissued at any time

They are considered stale dated (correct)

They are held indefinitely

Which of the following is NOT an acceptable payee for an Official Check?

Cash (correct)

Natural person

Business entity

Non-member

What must be done at the time of disbursal if a stop payment is placed on an Official Check?

Members must be informed Signup and view all the answers

Which of the following methods cannot be used to request Official Checks?

By text message Signup and view all the answers

What occurs to unnegotiated Official Checks after 3 years?

They are escheated to the state Signup and view all the answers

Which verification process is necessary for checks made payable to non-members?

OFAC verification Signup and view all the answers

What is the action taken if a check becomes stale dated?

Members are notified and can request to reissue it Signup and view all the answers

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

The check has not been reconciled, reissued, or escheated. Signup and view all the answers

What type of check must be selected when entering information in the Declaration Loss form?

Cashiers Check Signup and view all the answers

What is typically required before a member can have an Official Check reissued?

Waiting period of 90 days. Signup and view all the answers

Which of the following is NOT a risk associated with third-party indemnification for an Official Check?

Increased processing time. Signup and view all the answers

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

A printout of the IC screen and a Verification of Deposit. Signup and view all the answers

What is the first step to reissue an Official Check through Symitar?

Reset the check status to Not Issued. Signup and view all the answers

Which of the following must be entered to receive confirmation after submitting a reissue?

Your own email address. Signup and view all the answers

What should case comments include if an approval for reissuing a check is granted?

Rationale for the approval. Signup and view all the answers

Which of the following checks cannot be reissued?

Checks that were issued more than 4 days ago Signup and view all the answers

What should be done with unused Official Check stock during branch closing?

Pull it from the printer and place it in the vault Signup and view all the answers

What method is considered insufficient for verifying the authenticity of Official Checks?

Visual verification only Signup and view all the answers

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

Monthly Signup and view all the answers

What is the recommended quantity for placing newly arrived Official Check stock into sealed envelopes?

25, 50, or 100 Signup and view all the answers

Which of the following is NOT a guideline for safeguarding Official Check stock?

Load checks into the printer after hours Signup and view all the answers

Which component is essential for the verification of Official Checks in Symitar Check Manager?

Issued status Signup and view all the answers

What should happen if an envelope containing Official Checks shows signs of tampering?

Notify a supervisor and do not open the envelope Signup and view all the answers

What is one of the required elements on the front of the check?

Authorized signature(s) Signup and view all the answers

Which statement about the back of the check is true?

It must have a disclaimer above the endorsement lines. Signup and view all the answers

Which feature is specifically noted to be at the center bottom of the front of the check?

A security warning Signup and view all the answers

What should be included in the security details on the back of the check?

A text box with security details Signup and view all the answers

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

Endorsement lines Signup and view all the answers

In which section of the check would you find the statement 'Security Features included. Details on back'?

Right side of the front Signup and view all the answers

What is the first step to access the Search for Check screen in Symitar Check Manager?

Click Navigate > Accounting > Check Manager Signup and view all the answers

How many endorsement lines must be present on the back of the check?

Two endorsement lines Signup and view all the answers

What is the first step to ensure a check can be disbursed?

Verify there are sufficient funds to cover the check Signup and view all the answers

Which transaction code should be used for disbursing a check for CFCU?

KD Signup and view all the answers

What must members do to acknowledge the requirements associated with Official Checks?

Sign the file copy of the check Signup and view all the answers

Under what condition can a member place a stop payment on an Official Check?

If the check has been lost, stolen, destroyed, or mutilated Signup and view all the answers

What must branch employees ensure regarding call recordings for time-sensitive requests?

Calls must be recorded if Official Checks are disbursed Signup and view all the answers

What is required from members when they want to request a replacement check?

They must complete a Declaration of Loss form Signup and view all the answers

What is the correct procedure for printing and mailing an Official Check?

It can be handled by services or branch employees Signup and view all the answers

Which step is NOT part of the Official Check disbursement process?

Process the request without recording the call Signup and view all the answers

What should be done if a check number is not valid?

Contact your manager or Fraud & Transaction Analysis. Signup and view all the answers

What does it mean if the status of a check is Escheated?

The funds are with the state as unclaimed property. Signup and view all the answers

When searching for checks issued by Accounting, what prefix must be included?

01 Signup and view all the answers

What is the first step to process a check request for a closed membership?

Enter KD GL on a blank screen in Symitar. Signup and view all the answers

If uncertain about the issuing department of a check, what should be done?

Search with and without the prefix. Signup and view all the answers

What information is NOT required when submitting a check request case to Operations Services?

The member's phone number Signup and view all the answers

Which of these actions is part of mailing an official check to a member?

Mail it to the last known address by U.S. Mail. Signup and view all the answers

What should be entered in the comment field when processing a transaction in Symitar for a check request?

CHK REQ ATM EXCEP Signup and view all the answers

Study Notes

Official Checks

Credit Union offers Official Checks; funds debited at disbursement; stop payments are exceptions
Ordering, stop payments, reissuing, safeguarding stock, auditing, printing, and vendor inventory control are covered
First 3 checks in a month are free; fee schedule for subsequent checks
Checks payable to individuals, businesses, or entities; not payable to Cash, Bearer, or For Deposit Only; OFAC verification for non-members; payee field cannot be blank
Checks valid for 90 days; unnegotiated checks after 90 days are considered stale-dated
Payment Services reviews unnegotiated checks; members may reissue or receive a refund
Unclaimed checks escheated to the state after 3 years
Credit Union responsible for liability if payment refused; stop payments only placed as exceptions (members informed at disbursement)

Official Check Order Process

Members can request checks in person, by phone, mail, or secure email; employees follow the steps below
Steps: Identify, Process, Document, Disburse the Check.
Verify sufficient funds, run OFAC, create MARS-case, add comments (OFAC findings), debit account, assign to Ops Services for printing/mailing (if required)
Attach/index the received item, record the call (in person or phone requests)
Operations Services prints and mails; Branch prints and provides or mails
Transaction codes (KD for CFCU or KO for Spectrum)

Official Check Stop Payments

Members can't place stop payments unless the check is lost, stolen, destroyed, or mutilated
Employees confirm whether the check has been reconciled, reissued or escheated using IC feature in Symitar
Declaration of Loss form available in PDF and DocuSign/Symitar for stop payments requests.
Identifying the payee and reason for declaration: risk assessment for individuals vs large companies (double payments)
Second-party statements and third-party indemnification approved case-by-case, must discuss with manager/supervisor (includes IC screen and verification of deposit)
Exceptions rare, but can be granted for member relationships and check amount
Typical wait for reissue is 90 days after original issue

Reissuing Official Checks

Official Checks must first be reset to 'Not Issued' in the OpCon Self Service module to reissue.
Confirm via EASE OpCon Self Service module: check number, email for confirmation, submit button
Checks not reissuable: those that don't exist, issued over 4 days ago, not issued by your department
Contact Symitar Support if receipt of 'Check Not Found' or 'Can't Reissue' message

Safeguarding Official Check Stock

Each branch keeps a working supply of Official Checks loaded into the check printer, with excess stored in a vault or locked cabinet
During branch closing, unused checks removed from printer and stored
Newly arrived stock should be placed in envelopes/bags (25, 50, 100) sealed and dated, and stored securely.
Working supply and vault supply quantity audited monthly.

Auditing Official Check Stock

Audits include starting/ending numbers, and a total count of checks
Unsealed/untampered envelopes/packages not required to be opened

Identifying Official Checks

Two methods to verify Official Check authenticity: visual verification and Symitar check manager verification, always verify in Symitar
Visual verification: Credit Union's name, address, toll-free/web and "Pay" pre printed
Security features (signature(s), security details, pre-printed stock number)
Back of check: five-line disclosure, disclaimer ("Must be endorsed by all parties"), two endorsement lines

Verification in Symitar Check Manager

Procedures to access by navigating through Symitar's menu system, identifying valid and invalid checks, contact manager in case a record isn't found, and addressing discrepancies in check status

Operations: Printing Official Checks using a GL

Process for printing Official Checks if memberships are closed
MARS cases for printing will include specific information (subject, member name, address, check amount, and GL ID)
Details for processing the transaction in Symitar and mailing the check using US Mail
Vendor Inventory is handled through American Solutions for Business (ASB) handling orders and processing; confirmation of receipt and reporting issues

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Description

This quiz covers the essential information regarding the issuance and management of official checks at a credit union. Learn about the ordering process, fees, verification requirements, and the implications of stale-dated checks. Understand the responsibilities of both members and the credit union in handling checks.