Official Checks Process and Guidelines

Official Checks

• Credit Union offers Official Checks, debiting accounts at disbursement. Funds are guaranteed unless a stop payment is placed.
• First 3 official checks per calendar month are free; additional fees are per schedule.
• Checks can be made payable to individuals, businesses, or entities. Non-members require OFAC verification. Checks cannot be made payable to cash, bearer, or for deposit only. Payee field cannot be blank, and checks are valid for 90 days.
• Unnegotiated checks are reviewed and members are notified by letter. If not negotiated within 90 days they become stale dated.
• After 3 years, unnegotiated checks are reclaimed for the state.
• Official Checks are the responsibility of the Credit Union, and liability applies if payment is refused. Stop payments are exceptions only; members must be informed at the time of disbursal.

Official Check Order Process

• Members can order Official Checks in person, by phone, mail, or secure email.
• Employees must verify sufficient funds, run OFAC, create a MARS case, report any OFAC findings, debit the account in Symitar.
• If needed, cases may be assigned to Operations Services for printing/mailing.
• Employees must document relevant items and branch employees must ask members to sign a transaction receipt. Members must also sign a file copy of the check for acknowledgment of the 90-day stop payment requirement, confirming check receipt, and accuracy of check information.
• Employees must provide the Official Check, check stub, and transaction receipt, keeping signed copies for balancing.

Official Check Stop Payments

• Stop payments can't be placed on Official Checks unless the check is lost, stolen, destroyed, or mutilated; a replacement is issued.
• Members must complete a Declaration of Loss.
• Employees must verify the Official Check has not been reconciled, reissued, or escheated using IC feature in Symitar.
• Stop payment forms are available in PDF, and can be generated in DocuSign or Symitar.

Reissuing Official Checks

• To reissue an Official Check, reset the check status to "Not Issued" in OpCon Self Service.
• Enter check number, email, and submit.
• Some checks cannot be reissued (e.g., checks with incorrect numbers, that were issued more than 4 days prior, or checks that are not issued by the department).

Safeguarding Official Check Stock

• Each branch maintains a supply of Official Checks; employees load and manage this supply during work hours, keeping excess stock in vaults or locked cabinets.
• Used stock must be transferred to vaults or cabinets.
• New stock should be opened and inventoried with dual controls for security.
• Stock should be placed in envelopes/bags (with quantities of 25, 50 or 100), signed, and secured.

Auditing Official Check Stock

• Working and vault stock counts are recorded monthly.
• Monthly audit records the starting number, ending number, and total stock on hand.
• Sealed envelopes/bags with initialed, non-tampered stock do not require opening.

Identifying Official Checks

• Two methods for verifying official checks: visual verification and verification through Symitar Check Manager.
• Always verify checks in Symitar Check Manager—visual verification is not sufficient.
• Official Checks have characteristics that include: name, mailing address, toll-free number, web address, "Pay" designation, and/or security warnings located on check front.
• Official Checks have specific security features, and disclosures on the back of the check.

Operations: Printing Official Checks using a GL

• If a member's membership is closed, Operations Services may print and mail the check to the member’s last known address.
• Cases include member’s name, address, check amount, GL, and letter for member.

Official Checks: Vendor Inventory Control

• American Solutions for Business (ASB) controls the paper stock for Official Checks.
• Orders are submitted to ASB through a specific link on The Hub.
• Marketing confirms the order and sends information to ASB.
• ASB ships the order and reports discrepancies to ASB. Receivers control for discrepancies
• Operations Services reviews and documents the transaction information.

This quiz covers the key aspects of using and ordering official checks at a credit union. It includes details on fees, negotiation periods, and member responsibilities. Understand the official check process and ensure compliance with the requirements.