National Check Payments Certification (Ncp) Exam Questions & Answers 2024

What is the purpose of Reg CC {Ans: To implement to Expedited Funds Availability Act and the Check 21}What does Reg CC implement {Ans: Check Clearing for the 21st Century Act (Check 21) and the Expedited Funds Availability Act.}What is the Aux on us field used for? {Ans: Optional field to left of the routing field on micr line. Normally on business sized checks for the placement of consecutive serial number. Checks with an aux on un field are ineligible to conversion to ACH entries ARC, BOC, POP.}Describe the ODFI {Ans: Originating Depositary Financial Institution - Entity who receives payment instructions from originator and forwards them to the ACH operator}What do Reg J cover? {Ans: Check Collections}Describe the RDFI {Ans: Receiving Depositary Financial Institution - Entity that receives ACH entries from the ACH operator and post them to the account of its depositors (Receiver)}Note has two parties name the parties {Ans: Borrower called the Maker Lender called the Payee}Expedited Funds Availability Act also knows {Ans: Known as Reg CC}What is the purpose of the FFIEC? {Ans: Prescribe uniform principles, standards, and report forms for the federal examination of financial institutions by: