Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

American Bankers Association Exam CRCM Topic 6 Question 86 Discussion

Actual exam question for American Bankers Association's CRCM exam
Question #: 86
Topic #: 6
[All CRCM Questions]

A sender and any prior collecting banks grant a security interest to the sender's administrative Reserve Bank in all of their respective assets in the possession of the Reserve Bank to secure any of their obligations to the Reserve Bank. This security interest attaches when any warranty is breached or any obligation to the Reserve Bank is incurred. The Reserve Bank may take any action under applicable law to enforce its security interest; including exercising its right to set off amounts against any funds it holds. This situation holds true when:

Show Suggested Answer Hide Answer
Suggested Answer: B

by Nathalie at Apr 28, 2024, 12:15 AM

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel
Gregoria
2 months ago
Haha, this question is like trying to decipher a legal contract written in legalese. No wonder people dread these certification exams! Anyway, I think A is the right answer, but who knows, the Reserve Bank might just set off the funds regardless of the situation.
upvoted 0 times
Lemuel
23 days ago
I think A is the right answer too, but you never know with these things.
upvoted 0 times
...
Sue
1 months ago
I agree, these questions can be so confusing.
upvoted 0 times
...
...
Eun
2 months ago
Hmm, I'm not sure. The question is a bit convoluted. I'll go with D just to be safe - the sender identifies a liability to the Reserve Bank, so the security interest must apply in that case as well.
upvoted 0 times
...
Stephanie
2 months ago
I'm not sure about that. I think it might be D) Sender identifies liability to Reserve Bank.
upvoted 0 times
...
Tasia
2 months ago
I agree with Bonita. When the item is sent to a Reserve Bank, the security interest attaches.
upvoted 0 times
...
Malcom
2 months ago
I think the answer is B. When the Reserve Bank recovers, it has the right to exercise its security interest in the assets held by the sender and prior banks. That seems to fit the description in the question.
upvoted 0 times
Tony
7 days ago
D) Sender identifies liability to Reserve Bank
upvoted 0 times
...
Margurite
9 days ago
C) Bank makes for a substitute check
upvoted 0 times
...
Art
13 days ago
B) Reserve Bank recovers
upvoted 0 times
...
Julio
1 months ago
A) Item is sent to a Reserve Bank
upvoted 0 times
...
...
Clay
2 months ago
The correct answer is A. This scenario describes the Reserve Bank's security interest in the assets of the sender and prior collecting banks when an item is sent to the Reserve Bank. The security interest attaches when a warranty is breached or an obligation is incurred, allowing the Reserve Bank to enforce its rights.
upvoted 0 times
...
Bonita
2 months ago
I think the answer is A) Item is sent to a Reserve Bank.
upvoted 0 times
...

Save Cancel