American Bankers Association Exam CRCM Topic 3 Question 106 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 106
Topic #: 3

[All CRCM Questions]

The sender's liability for warranties and indemnities that a Reserve Bank makes for a substitute check is subject to the following conditions and limitations EXCEPT:

AThe sender of an original check is not liable for amounts paid by the Reserve Bank absent the sender's agreement to the contrary

BThe sender's liability under Regulation CC is not altered by the Regulation J provisions

CFailure of sender to have authority to make the required warranties and agreements

DA sender of an electronic item that is not a substitute check is not liable for any amount paid by a Reserve Bank that is attributable to the Reserve Bank's own lack of good faith or failure to exercise ordinary care

Show Suggested Answer

Suggested Answer: D

by Truman at Jan 27, 2025, 12:12 PM

Limited Time Offer

25%

Off

Get Premium CRCM Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Paul

2 months ago

I bet the person who wrote this question has a secret passion for legalese. They're probably the life of the party when they start talking about Regulation CC.

upvoted 0 times

Leigha

1 months ago

C) Failure of sender to have authority to make the required warranties and agreements

upvoted 0 times

...

Charlena

1 months ago

B) The sender's liability under Regulation CC is not altered by the Regulation J provisions

upvoted 0 times

...

Salley

1 months ago

A) The sender of an original check is not liable for amounts paid by the Reserve Bank absent the sender's agreement to the contrary

upvoted 0 times

...

Kasandra

3 months ago

I'm just trying to get through this exam without falling asleep. These banking regulations are like counting sheep, but with more fine print.

upvoted 0 times

Devon

2 months ago

And double check your answers before submitting.

upvoted 0 times

...

Mable

2 months ago

Just remember to read each question carefully.

upvoted 0 times

...

Loreta

2 months ago

I agree, it's hard to stay focused on all the details.

upvoted 0 times

...

Earlean

3 months ago

I know, these regulations are so tedious.

upvoted 0 times

...

Jestine

3 months ago

I'm going with D as well. The other options just seem too restrictive. It's like the bank wants to have its cake and eat it too!

upvoted 0 times

...

Rory

3 months ago

D seems like the clear winner here. I mean, if the Reserve Bank messes up, why should the sender be on the hook? That's just not fair.

upvoted 0 times

Rashad

2 months ago

D) A sender of an electronic item that is not a substitute check is not liable for any amount paid by a Reserve Bank that is attributable to the Reserve Bank's own lack of good faith or failure to exercise ordinary care

upvoted 0 times

...

Layla

3 months ago

A) The sender of an original check is not liable for amounts paid by the Reserve Bank absent the sender's agreement to the contrary

upvoted 0 times

...

Niesha

3 months ago

Hmm, I see your point. Let's review the options again.

upvoted 0 times

...

Karina

3 months ago

I'm not sure about this one. The wording is a bit confusing, but I'm leaning towards A. The sender of an original check is not liable for amounts paid by the Reserve Bank absent the sender's agreement to the contrary.

upvoted 0 times

...

James

3 months ago

I think the correct answer is D. The sender of an electronic item that is not a substitute check is not liable for any amount paid by a Reserve Bank that is attributable to the Reserve Bank's own lack of good faith or failure to exercise ordinary care.

upvoted 0 times