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

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Paul

27 days 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.

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2 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.

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Rashad

21 days 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

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Layla

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

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Niesha

2 months ago

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

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Karina

2 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.

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James

2 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.

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2 months ago

I think the answer is C.

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