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)
  • 10
  • 7
  • 5

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?

<p>Members must be informed (C)</p> Signup and view all the answers

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

<p>By text message (C)</p> Signup and view all the answers

What occurs to unnegotiated Official Checks after 3 years?

<p>They are escheated to the state (A)</p> Signup and view all the answers

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

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

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

<p>Members are notified and can request to reissue it (C)</p> Signup and view all the answers

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

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

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

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

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

<p>Waiting period of 90 days. (C)</p> Signup and view all the answers

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

<p>Increased processing time. (C)</p> Signup and view all the answers

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

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

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

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

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

<p>Your own email address. (D)</p> Signup and view all the answers

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

<p>Rationale for the approval. (B)</p> Signup and view all the answers

Which of the following checks cannot be reissued?

<p>Checks that were issued more than 4 days ago (D)</p> Signup and view all the answers

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

<p>Pull it from the printer and place it in the vault (A)</p> Signup and view all the answers

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

<p>Visual verification only (B)</p> Signup and view all the answers

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

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

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

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

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

<p>Load checks into the printer after hours (D)</p> Signup and view all the answers

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

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

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

<p>Notify a supervisor and do not open the envelope (B)</p> Signup and view all the answers

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

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

Which statement about the back of the check is true?

<p>It must have a disclaimer above the endorsement lines. (A)</p> Signup and view all the answers

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

<p>A security warning (B)</p> Signup and view all the answers

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

<p>A text box with security details (C)</p> Signup and view all the answers

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

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

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

<p>Right side of the front (B)</p> Signup and view all the answers

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

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

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

<p>Two endorsement lines (A)</p> Signup and view all the answers

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

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

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

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

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

<p>Sign the file copy of the check (A)</p> Signup and view all the answers

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

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

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

<p>Calls must be recorded if Official Checks are disbursed (B)</p> Signup and view all the answers

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

<p>They must complete a Declaration of Loss form (D)</p> Signup and view all the answers

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

<p>It can be handled by services or branch employees (A)</p> Signup and view all the answers

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

<p>Process the request without recording the call (D)</p> Signup and view all the answers

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

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

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

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

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

<p>01 (D)</p> Signup and view all the answers

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

<p>Enter KD GL on a blank screen in Symitar. (C)</p> Signup and view all the answers

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

<p>Search with and without the prefix. (B)</p> Signup and view all the answers

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

<p>The member's phone number (A)</p> Signup and view all the answers

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

<p>Mail it to the last known address by U.S. Mail. (C)</p> Signup and view all the answers

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

<p>CHK REQ ATM EXCEP (A)</p> Signup and view all the answers

Flashcards

Official Checks

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

Stop Payment

A request to prevent an official check from being cashed.

Account Debit

Funds are withdrawn from a member's account when an official check is disbursed.

Stale Dated Check

An official check not negotiated (cashed) within 90 days of its issue date.

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OFAC Verification

The process of checking if a non-member payee is on the Office of Foreign Assets Control (OFAC) sanctions list.

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Free Official Checks

The first three official checks issued in a calendar month are free.

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Escheatment

The process of the state receiving unnegotiated official checks after a set time period.

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Payee

The person or entity who is to receive payment.

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OFAC Verification (MAAP)

Checking if the payee is on the Office of Foreign Assets Control (OFAC) sanctions list.

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Sufficient Funds Check (MAAP)

Ensuring enough money is available to cover the check amount.

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MARS Case Creation

Creating a case record in the MARS system for the check disbursement request.

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Official Check Stop Payment Limitation

Members can request stop payments only if the check is lost, stolen, destroyed, or mutilated; a replacement check is issued.

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Transaction Receipt Signature

Member's signature confirmation for the transaction.

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Daily Balancing

Matching the physical checks and records for accuracy.

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Verification of Check Details

Confirming the accuracy of the information on the check.

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Transaction Codes (KD/KO)

Specific codes for posting check disbursement transactions in the system (KD for CFCU, KO for Spectrum).

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Official Check Reconciliation

Confirming an official check hasn't been reconciled, reissued, or escheated before proceeding.

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Declaration of Loss Form

Document used to declare a lost official check, available in PDF, DocuSign, or Symitar.

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Symitar Account Servicing

Symitar feature to access forms and documents, including "Declaration Loss."

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Check Type in Symitar

Specify check type as 'Cashier's Check' for Declaration of Loss Form within Symitar.

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Reissuing Official Checks

Process of reprinting/reissuing an official check via Symitar and OpCon Self Service system.

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Check Status Reset

Changing an official check status to "Not Issued" in OpCon Self Service before reissuance.

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Manager/Supervisor Approval

Needed to authorize Declaration of Loss and reissue due to potential risks.

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90-day Waiting Period

Minimum waiting period after the original issue date before reissuing a check.

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Reissuable Official Checks

Official checks that meet specific criteria can be reissued. Criteria include: existing check number, issued within 4 days, status of 'Issued', and issued by your department.

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Official Check Safeguarding Guidelines

Guidelines for protecting official checks include: loading checks during working hours, storing excess checks securely, dual control for new stock, sealing new stock in tamper-proof bags, and securing checks in a vault or locked cabinet.

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Auditing Official Checks

Official check inventory is audited monthly as part of the cash/negotiable items audit. The process involves verifying starting/ending numbers and total on hand.

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Visual Verification of Official Checks

Visually verifying an official check involves inspecting both the front and back for security features.

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Symitar Check Manager Verification

Symitar Check Manager records all issued official checks. Verifying in this system is mandatory and more reliable than visual verification.

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Why Visual Verification is Insufficient

While visual verification is a step, it's not enough to guarantee authenticity. Checking Symitar Check Manager is crucial for confirming a check's validity.

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Official Check Stock Management

Branches maintain a working supply of official checks, with excess kept secure. Strict procedures are in place for handling and securing checks.

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Dual Control for New Official Check Stock

Opening new official check stock should involve two employees for added security and accountability.

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Official Check Features (Front)

A credit union check must display the institution's name, address, toll-free number, website, "Pay" in the pre-printed section, a security warning, and authorized signatures conforming to policy.

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Official Check Features (Back)

The back of the check includes a 5-line disclosure, a disclaimer about endorsement by all parties, 2 endorsement lines, security details in a box, and a stock number.

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Where to Find Security Details?

Security features for a credit union check are outlined on the back, while the notification about their presence is found on the front right corner.

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Symitar Check Manager

A system used to verify if a check is valid and official for the credit union.

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Symitar Home Screen Navigation

To access the Check Manager on the Symitar home screen, navigate to "Navigate > Accounting > Check Manager."

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Teller Transaction Code 'IC'

The code 'IC' on the Teller Transactions screen is used to access Check Manager and Check Control.

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Check Manager - Check Control

To access Check Control in the Check Manager, press Enter/click Next after entering transaction code 'IC' on the Teller Transactions screen.

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Search for Check Screen

This screen within Check Manager allows you to search for and verify the validity of a check.

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Check Prefixes

Certain departments use prefixes on check numbers, like '01' for Accounting and '00' for others.

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Searching for Checks

To find a check in Check Manager, enter its number. Include prefix '01' for Accounting checks. If unsure, try with and without the prefix.

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Invalid Check Number?

If you enter a wrong check number, Check Manager shows 'Record Not Found'. Contact your manager or Fraud & Transaction Analysis.

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Check Status

'Issued' or 'Escheated' are the normal statuses. Contact your manager or Fraud & Transaction Analysis if you see something else.

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Escheated Status

Means the Credit Union sent funds to the state as unclaimed property. Contact Operations Services if you see it.

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Official Checks: Member's Funds

If a closed member is owed money, Operations Services can print an official check and mail it to their last known address.

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Official Check Processing

For official checks, enter details in Symitar, print a letter, and mail both to the member.

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Vendor Inventory Control

The credit union uses American Solutions for Business (ASB) to manage their paper stock for official checks.

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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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Related Documents

Chevron Federal Credit Union Official Checks PDF

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.

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