Official Checks Process and Regulations

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Questions and Answers

What is the first step in processing an official check using MAAP to Level 3?

Run OFAC on the payee.

Debit the account in Symitar.

Verify there are sufficient funds to cover the check. (correct)

Create a MARS case for the request.

Which transaction code is used for CFCU when disbursing an official check?

KD (correct)

What must be confirmed before proceeding with the Declaration of Loss for an Official Check?

The check has not been deposited

The check has been escheated

The check has been reissued

The check has not been reconciled (correct)

Why must members sign the transaction receipt when disbursing an official check?

To confirm they received the check. Signup and view all the answers

Under what circumstances can members place stop payments on official checks?

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

What type of check must be selected when filling out the Declaration of Loss form in Symitar?

Cashiers Check Signup and view all the answers

Why is there additional risk when third-party indemnification is used for an individual?

Because it can lead to a payment dispute Signup and view all the answers

What document must members complete for a stop payment request on an official check?

Declaration of Loss (Exchange Items) form. Signup and view all the answers

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

A printout of the IC screen Signup and view all the answers

Which of the following is NOT a step for handling an official check disbursement?

Attach the verification of member identity. Signup and view all the answers

What must branch employees do for phone requests regarding official checks?

Perform MAAP and record the call. Signup and view all the answers

What is the typical waiting period before a Credit Union can reissue an Official Check?

90 days after the original issue date Signup and view all the answers

What is required when the amount of the official check exceeds the employee's limit?

An override will be required. Signup and view all the answers

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

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

What should employees do after clicking the Submit button in the reissue process?

Click the OK button on the Completed screen Signup and view all the answers

What must be done before offering second-party statements and third-party indemnification to members?

Obtain approval from a manager Signup and view all the answers

What happens when a member orders an Official Check?

The funds are guaranteed unless a stop payment is placed. Signup and view all the answers

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

Three Signup and view all the answers

Which of the following statements about Official Checks is true?

Official Checks are valid for 90 calendar days. Signup and view all the answers

What occurs if an Official Check is not cashed within 90 days?

The check is considered stale dated. Signup and view all the answers

What is the consequence of not negotiating an Official Check within three years?

The funds are escheated to the state. Signup and view all the answers

What is one of the requirements for issuing an Official Check?

The payee field must be filled out completely. Signup and view all the answers

Which method is NOT a way members can request Official Checks?

Through a mobile app Signup and view all the answers

What happens if a stop payment is requested on an Official Check?

Stop payments are placed only in special circumstances. Signup and view all the answers

Which checks cannot be reissued?

Checks with check numbers that do not exist Signup and view all the answers

What should branch employees do with unused check stock at closing?

Place them in the vault or locked cabinet Signup and view all the answers

When should checks be placed in sealed envelopes or tamper-proof bags?

Upon arrival of newly issued stock Signup and view all the answers

What is required to securely store checks?

Store them in the vault or a locked cabinet Signup and view all the answers

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

Monthly Signup and view all the answers

What is the best way to verify the authenticity of Official Checks?

Verifying in Symitar Check Manager Signup and view all the answers

Which method is NOT adequate for verifying Official Checks?

Assuming checks are authentic if they seem legitimate Signup and view all the answers

What is the procedure if checks arrive unsealed?

Inform management and seal under dual control Signup and view all the answers

Which of the following must be included on the front of a check?

The Credit Union’s brand-specific name and mailing address Signup and view all the answers

What is required at the center bottom of the front of the check?

A security warning Signup and view all the answers

What statement should appear above the endorsement lines on the back of the check?

Must be endorsed by all parties Signup and view all the answers

Which of the following is NOT a requirement for the back of the check?

An authorized signature Signup and view all the answers

Which feature is mandatory on the front of the check?

A security warning Signup and view all the answers

What must the back of the check contain related to endorsements?

Two endorsement lines Signup and view all the answers

Which of the following statements is true regarding the verification process in the Symitar Check Manager?

Transaction code IC must be entered Signup and view all the answers

Where can you find the statement about security features on the front of the check?

On the right side of the check Signup and view all the answers

What should be done if a 'Record Not Found' message is displayed when searching for a check number?

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

What prefix must be included when searching for checks issued by Accounting?

01 Signup and view all the answers

What does the status 'Escheated' indicate for a check?

The funds are being sent to the state as unclaimed property. Signup and view all the answers

Which of the following information is NOT included in MARS cases assigned to Operations Services?

Member's bank account number. Signup and view all the answers

What should be done first when tasked to process a check for a member with a closed account?

Process the transaction in Symitar. Signup and view all the answers

What is the proper comment to enter when processing a check request in Symitar?

CHK REQ ATM EXCEP Signup and view all the answers

In the context of Check Manager, what does the status 'Issued' signify?

The check is valid and has been processed. Signup and view all the answers

When an Escheat Date is filled in, what does it imply about the funds?

Funds are currently held by the state. Signup and view all the answers

Study Notes

Official Checks

Credit Union offers Official Checks, funds debited at disbursement unless a stop payment is placed.
First 3 checks in a month are free, additional fees per the Fee Schedule.
Checks payable to individuals, businesses or entities, not to cash, bearer or for deposit only.
Checks are valid for 90 days, becoming stale-dated if not negotiated within that time.
Uncashed checks are reviewed and members notified after 3 years, or escheated to the state.
Official Checks are the Credit Union's obligation, liability provisions apply if payment is refused.

Official Check Order Process

Members can request checks in person, by phone, mail, or secure email.
Employees must follow specific steps: verify sufficient funds, run OFAC on the payee (if non-member), create a case, debit the account, and potentially assign to Operations for printing/mailing.
Employees must document the transaction, including recording the call and verifying the signature of the member.
Transaction codes KD (CFCU) and KO (Spectrum) are used for checks; check disbursement limit applies to employees.
Branch staff must verify member ID and obtain signature for stop payment confirmation.

Official Check Stop Payments

Stop payments only allowed if a check is lost, stolen, destroyed, or mutilated.
Members must complete a Declaration of Loss form, and employees must confirm the check hasn't been reconciled, reissued, or escheated via IC feature in Symitar.
This form is available in PDF and can be generated in DocuSign or Symitar.
If an individual, risk is increased with third-party indemnification.
For larger companies, risk is high due to the potential double payments. Additional case-by-case circumstances may apply.
Member may need to wait 90 days before requesting a reissue.

Reissuing Official Checks

To reprint checks, their status needs to be reset to "Not Issued" in OpCon Self Service module.
Steps include clicking/using the correct buttons, entering check number, email address, and submitting the request.
Certain checks cannot be reissued (if they don't exist, issued over 4 days ago, or not issued by the department).
Contact Symitar support if an error (e.g., Check Not Found or Can't Reissue) is received.

Safeguarding Official Check Stock

Branches maintain a working stock of official checks.
Employees must load checks into the printer, store excess in vaults/cabinets, pull unused ones during branch close, and possibly open new stock under dual control, in sealed containers.
Securely store checks to prevent tampering.

Auditing Official Check Stock

Official check stock counts are done monthly, during the cash/negotiable items audit.
Records should include starting number, ending number, and total in hand.
Sealed and initialed envelopes/bags don't require opening if they show no signs of tampering.

Identifying Official Checks

Visual and Symitar Check Manager verification methods for authenticating checks.
Always verify checks in Symitar Check Manager, although visual elements are helpful on the front and back of the check, such as brand name, mailing details, Pay line, and security warnings, to ensure authenticity.
Backs of checks must include a 5-line disclosure, a disclaimer (must be endorsed by all parties), and two endorsement lines.

Operations: Printing Official Checks Using A GL

If a member's membership is closed they may receive an Official Check.
Operations Services handles these requests. Relevant case information is gathered such as member name, address, amount of the check, and the appropriate GL code.
After verifying the records, staff will follow the procedure of printing the checks, inserting into an envelope, and mailing to the member.

Official Checks: Vendor Inventory Control

ASB (American Solutions for Business) manages paper stock inventory for the Credit Union.
Departments/branches request orders through the ASB link on The Hub, and marketing verifies reasonableness for the order.
ASB prepares the order and sends it to the requesting department/branch(s).
Receipt confirmation and acknowledgement of any discrepancies by signing the packing slip are essential.
Operational services will verify the information to the correct departments and file the paperwork for future reference.

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Description

This quiz covers the essential information regarding official checks offered by the Credit Union. It includes details on the ordering process, fees, validity, and member obligations. Perfect for understanding the regulatory aspects associated with issuing official checks.