Official Checks Procedures
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Questions and Answers

How many Official Checks can a member request for free each calendar month?

  • 10
  • 5
  • 3 (correct)
  • 1

    • Official Checks can be made payable to Cash.

    False

    What happens to unnegotiated Official Checks after three years?

    They are escheated to the state.

    Official Checks are valid for _____ calendar days.

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

    Match the following actions to their corresponding methods of requesting Official Checks:

    <p>In Person = Verify the ID By Phone = Contact the member By Mail = Send request via post Through Secure Email = Use encrypted email service</p> Signup and view all the answers

    What must be included in the payee field of an Official Check?

    <p>A natural person(s), business, or entity</p> Signup and view all the answers

    Members will be notified by letter regarding unnegotiated checks.

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

    What is the consequence of placing a stop payment on an Official Check?

    <p>Stop payments are only placed as exceptions.</p> Signup and view all the answers

    What type of check must be confirmed as not reconciled before proceeding with the Declaration of Loss?

    <p>Official Check</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 additional risk is involved when third-party indemnification is used for an individual?

    <p>There is additional risk due to potential fraud or miscommunication.</p> Signup and view all the answers

    The case comments should include a rationale for any __________.

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

    Match the step with its corresponding action for reissuing an Official Check:

    <p>Click EASE OpCon Self Service = Access the Reissue Checks module Enter the check number = Identify the check to reissue Check your email = Receive confirmation of the reissue Click the Submit button = Submit the reissue request</p> Signup and view all the answers

    How long must a member typically wait after the original issue date before a check can be reissued?

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

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

    <p>IC screen</p> Signup and view all the answers

    Exceptions for the Declaration of Loss can only be granted based on the dollar amount of the check.

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

    What must be verified before disbursing an official check?

    <p>Sufficient funds to cover the check</p> Signup and view all the answers

    Members can place stop payments on official checks for any reason.

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

    What form must members complete to initiate a stop payment on an official check?

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

    Branch employees must ask members to sign the transaction receipt using a __________.

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

    Which transaction codes are used for disbursing a check?

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

    Match the following procedures with their corresponding steps:

    <p>A = Verify there are sufficient funds to cover the check. B = Create a MARS case for the request. C = Debit the account in Symitar. D = Add a case comment regarding any OFAC finding.</p> Signup and view all the answers

    Branch employees may disburse official checks for phone requests without any prior process checks.

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

    What must members sign on the file copy of the check to confirm its accuracy?

    <p>Members must sign to confirm that the information on the check is accurate.</p> Signup and view all the answers

    What must be included on the front of the check as part of its characteristics?

    <p>A security warning at the center bottom</p> Signup and view all the answers

    The back of the check requires only one endorsement line for validity.

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

    What specific term must be included in the check but not as part of the embossed amount?

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

    The check must have a notice that reads: 'Security Features ______. Details on back.'

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

    Match the following pieces of information with their corresponding locations on the check:

    <p>Authorized signatures = Front 5-line disclosure = Back Pre-printed stock number = Back Notice of security features = Front</p> Signup and view all the answers

    Which of the following must be present on the back of the check?

    <p>A disclaimer above the endorsement lines</p> Signup and view all the answers

    The authorized signatures must conform to policy regarding the number of signers.

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

    What does the text box on the back of the check contain?

    <p>Security details</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 more than 4 days ago can be reissued.

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

    What should newly arrived stock of Official Checks be placed into?

    <p>Sealed envelopes or tamper-proof bags</p> Signup and view all the answers

    Checks must be counted and recorded on a ______ basis during the cash and negotiable items audit.

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

    Match the guidelines for safeguarding Official Check stock with the correct actions:

    <p>Checks should be loaded into the printer during working hours = True Unused stock should be left in the printer at closing = False Newly arrived stock should be opened under single control = False The checks should always be secured in the vault or locked cabinet = True</p> Signup and view all the answers

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

    <p>Both visual verification and verification in Symitar Check Manager</p> Signup and view all the answers

    It is necessary to open sealed envelopes to count the Official Checks inside.

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

    What should employees do if they receive a 'Check Not Found' message?

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

    What should you do if the check status is Escheated?

    <p>Contact Operations Services</p> Signup and view all the answers

    When searching for a check issued by Accounting, the prefix '01' must be entered.

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

    What is indicated when a check’s status is Escheated?

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

    Check numbers issued by departments other than Accounting begin with the prefix _____ .

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

    Match the following departments with their corresponding check number prefixes:

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

    What message returns if an invalid check number is entered?

    <p>Record Not Found</p> Signup and view all the answers

    Employees should process transactions in Symitar before printing the letter.

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

    What information must be included in MARS cases when requesting checks?

    <p>Subject, member's name, address, dollar amount, GL, and a letter.</p> Signup and view all the answers

    Study Notes

    Official Checks

    • Offered by the Credit Union
    • Funds debited when check disbursed, unless a stop payment is placed
    • First three checks in a month are free; fees apply thereafter

    Contents

    • Ordering Official Checks: page 2
    • Stop Payments: page 3
    • Reissuing Official Checks: page 4
    • Safeguarding Stock: page 4
    • Auditing Stock: page 4
    • Identifying Official Checks: page 5
    • Printing from a GL: page 7
    • Vendor Inventory Control: page 7

    The Basics

    • First three official checks in a calendar month are free.
    • Check disbursement is when the account is debited.
    • Checks are payable to people, businesses, or entities (not cash, bearer, for deposit only).
    • Checks are valid for 90 days. If not cashed, they become stale-dated.
    • Uncashed checks are reviewed periodically. Members receive notifications about uncashed checks. They can reissue checks or have funds returned to their accounts. After 3 years, uncashed checks are escheated (given) to the state.
    • The Credit Union is responsible for official checks and is liable if payment is refused

    Official Check Order Process

    • Members can get official checks in person, by phone, by mail, or secure email.
    • Employees must follow steps:
      • Verify sufficient funds, OFAC compliance, and create a request case
      • Debit the account, assign to Operations Services if needed for processing.
      • Record documentation details
      • Employees disburse the check according to specific codes (KD for CFCU or KO for Spectrum).
      • Employees must ask members to sign transaction receipts, for stop payment requirements, and to confirm details on the check.
      • Employees give members the check, stubs, and transaction receipts.
      • Receipts are saved for daily balancing.

    Official Check Stop Payments

    • Stop payments can only be placed in cases of loss, theft, destruction, or mutilation of checks.
    • Members must complete a Declaration of Loss form and use the IC feature in Symitar to confirm the check is not already reconciled, reissued, or escheated before placing a stop payment.
    • Forms can be generated in DocuSign or downloaded as PDF.
    • Third-party risk assessment considerations apply (double payments).
    • Second party statements and third-party indemnity must be discussed with a manager or supervisor.

    Reissuing Official Checks

    • Reset "Not Issued" status in the OpCon Self Service module before reissuing.
    • Check number, email address, and submitting process.
    • Checks that cannot be reissued:
      • Non-existent check numbers
      • Checks older than 4 days
      • Checks with status other than "Issued"
      • Checks not issued by the department.
    • Contact Symitar Support for issues.

    Safeguarding Official Check Stock

    • Branches keep a working supply of official checks in a locked cabinet or vault.
    • Unused checks are moved from the printer to the vault/cabinet when closing.
    • Newly arrived checks are placed in sealed envelopes or bags (25, 50, or 100 per bag).
    • Envelopes are signed and dated.
    • Checks are stored securely in the vault or cabinet.

    Auditing Official Check Stock

    • Monthly review of stocks
    • Auditing counts the working supply and vault supply during cash audits.
    • Record the starting number, ending number, and total amount of physical checks on hand.
    • Checks in sealed, initialed envelopes require no opening.

    Identifying Official Checks

    • Two methods exist (visual, or through Symitar Check Manager).
    • Symitar Check Manager is the recommended procedure for verification. Visual verification alone is not sufficient.
    • Front of checks: brand name, address, toll-free number, web address, "Pay" designation(not part of amount), security warning
    • Back of checks: 5-line disclosure, disclaimer (endorsement by all parties), endorsement lines, security details, stock number.

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    Related Documents

    Chevron Federal Credit Union Official Checks PDF

    Description

    This quiz covers the procedures and policies regarding official checks offered by the Credit Union. Learn about ordering, stop payments, reissuing checks, and key policies such as the free checks limit and stale-dated checks. Test your understanding of these important banking practices.

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