Podcast
Questions and Answers
Which of the following is NOT a characteristic of the front of the check?
Which of the following is NOT a characteristic of the front of the check?
A security warning must be present at the bottom of the back of the check.
A security warning must be present at the bottom of the back of the check.
False
What text must be included above the endorsement lines on the back of the check?
What text must be included above the endorsement lines on the back of the check?
Must be endorsed by all parties
The authorized signatures on a check must conform to __________.
The authorized signatures on a check must conform to __________.
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Match the following components with their descriptions:
Match the following components with their descriptions:
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Which steps are necessary to access the Search for Check screen in Symitar Check Manager?
Which steps are necessary to access the Search for Check screen in Symitar Check Manager?
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The disclaimer on the back of the check is for 'Must be endorsed by all parties'.
The disclaimer on the back of the check is for 'Must be endorsed by all parties'.
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What information is required to appear as a security feature on the front of the check?
What information is required to appear as a security feature on the front of the check?
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What is the first step in the Official Check disbursement process?
What is the first step in the Official Check disbursement process?
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Members can place stop payments on Official Checks under any circumstance.
Members can place stop payments on Official Checks under any circumstance.
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What form must members complete to request a stop payment on an Official Check?
What form must members complete to request a stop payment on an Official Check?
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To verify funds for a check, operations must run __________ on the payee if they are not a member.
To verify funds for a check, operations must run __________ on the payee if they are not a member.
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Match the following roles with their responsibilities in the Official Check procedure:
Match the following roles with their responsibilities in the Official Check procedure:
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What must branch employees request from members upon disbursement of an Official Check?
What must branch employees request from members upon disbursement of an Official Check?
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Handling and safeguarding check stock is the responsibility of Branch Employees only.
Handling and safeguarding check stock is the responsibility of Branch Employees only.
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What action is required if the check amount exceeds an employee's limit?
What action is required if the check amount exceeds an employee's limit?
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What should be done if a Record Not Found message is returned when searching for a check number?
What should be done if a Record Not Found message is returned when searching for a check number?
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Check numbers issued by Accounting always begin with the prefix 00.
Check numbers issued by Accounting always begin with the prefix 00.
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What does it mean if the check status is Escheated?
What does it mean if the check status is Escheated?
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Check numbers for checks issued by any other department begin with the prefix ______.
Check numbers for checks issued by any other department begin with the prefix ______.
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Match the steps with the correct actions for processing an Official Check:
Match the steps with the correct actions for processing an Official Check:
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Which of the following is NOT a step in the process of printing an Official Check?
Which of the following is NOT a step in the process of printing an Official Check?
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It is sufficient to enter check numbers without the prefix when issuing checks from the Accounting department.
It is sufficient to enter check numbers without the prefix when issuing checks from the Accounting department.
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What information should the subject line include when submitting a check request?
What information should the subject line include when submitting a check request?
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Study Notes
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.
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Description
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.
