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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Kasandra

2 days 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.

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Jestine

5 days 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!

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Rory

9 days 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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Niesha

13 days ago

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

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Karina

14 days 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

18 days 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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Kris

18 days ago

I disagree, I believe the answer is D.

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Niesha

25 days ago

I think the answer is C.

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