Discuss American Bankers Association CRCM Exam Topic 1 Question 126

When returning items to a Reserve Bank, the paying and returning banks:

ACannot disclaim the warranties, authorizations, and agreements whether or not the returned check bears an endorsement of the paying bank or returning bank

BAuthorize the Reserve Bank to handle the item in accordance with Regulation J and the operating circulars

CWarrant that the check bears all endorsements applied by all parties that handled the check in paper or electronic form

Dwill not be liable for the failure of a paying bank, collecting bank, or a nonbank payer to pay for an item

Suggested Answer: A, B, C

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22 comments · newest first

Altha 2 days ago

I agree, B is clear about handling items.

Lavonda 7 days ago

I think B is the best choice. It makes sense to authorize the Reserve Bank.

France 12 days ago

D seems risky. We should be accountable for failures.

Jolene 18 days ago

I’m leaning towards A. It’s important to maintain warranties.

Sabra 23 days ago

True, but C feels a bit too complicated for this question.

Ceola 28 days ago

But what about C? It ensures all endorsements are covered.

Raina 1 month ago

I agree, B makes sense. It’s about following the rules.

Arlene 1 month ago

I think option B is the best choice. It’s clear and straightforward.

Lashon 1 month ago

Just to clarify, is it really true that they can't disclaim warranties?

Reynalda 2 months ago

D) is surprising, I thought they’d be liable for something!

Lawana 2 months ago

C) seems a bit much, how can they guarantee all endorsements?

Paulene 2 months ago

Totally agree with B), it's all about following the rules!

Carry 2 months ago

A) is correct, they can't disclaim warranties.

Lonny 2 months ago

Just to clarify, A) is definitely a must-know for compliance!

Rozella 2 months ago

D) Really? They won't be liable at all? That sounds too good to be true.

Franchesca 3 months ago

C) seems a bit much, how can they guarantee all endorsements?

Lynda 3 months ago

Totally agree with B), it's all about following the rules!

Nakisha 3 months ago

A) is correct, they can't disclaim warranties.

Stephaine 3 months ago

I’m leaning towards option D being true, but I remember there was some nuance about liability that we covered in class.

Daniel 3 months ago

I remember practicing a question similar to this where we had to identify the warranties involved in check processing. I think option C is correct.

Dewitt 4 months ago

I'm not entirely sure about option A; I feel like there might be exceptions to disclaiming warranties, but I can't recall the details.

Brittni 5 months ago

I think option B sounds familiar because we discussed how banks need to follow specific regulations when handling returns.

American Bankers Association CRCM Exam - Topic 1 Question 126 Discussion