National Check Payments Certification (NCP) Exam Study
Guide 2024-2025
1. What is the purpose of Reg CC To implement to Expedited Funds Availability Act and the Check
21
2. What did Check 21 Act do Faciliate check truncation by authorizing substitue checks, Fos-
ter innovation in the check collection system without madating
receipt of checks in electronic form, Improve the overall eflcien-
cy of the Nations Payments system.
3. What is the purpose of the Prescribe uniform principles, standards, and report forms for
FFIEC? the federal examination of
financial institutions by:
Board of Governors of the Federal Reserve System (FRB)
Federal Deposit Insurance Corporation (FDIC)
National Credit Union Administration (NCUA)
Oflce of the Comptroller of the Currency (OCC), and
Consumer Financial Protection Bureau (CFPB)
4. What is the purpose of the Simplify, clarify, and modernize the law governing commercial
Uniform Commercial Code? transactions
Permit the continued expansion of commercial practices
through custom, usage, and
agreement of the parties
Make uniform the law among the various jurisdictions.
5. What do the provisions of Arti- Negotiable Instruments
cle 3 cover
6. In the event of inconsistent In general, Federal law preempts State law in cases of inconsis-
provisions, which check rules tency -
or
regulations prevail?
7.
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, National Check Payments Certification (NCP) Exam Study
Guide 2024-2025
What options are available in Either Federal Reserve or Private Sector Rules (Clearing House
the U.S. for image exchange or unique agreement) options
rules coverage? exist for image exchange rules coverage in the U.S.:
8. Does Check 21 provide legal No. Check 21 only provides legal recognition and equivalency of
rules or address check image substitute checks. Additional
exchanges between banks? agreements and/or rules are required for image exchanges.
The Act does not govern image
exchanges, and therefore image exchanges still need to be
performed under agreement
between the parties.
9. According to the Federal Re- The Federal Reserve Banks Operating Circular No. 3 (OC3) out-
serve Operating Circular No. lines eligibility for both paper
3 and image cash letters in terms of cash items or non-cash items:
(OC3), what items are eligible
for image exchange?
10. What are the ECCHO Rules? ECCHO Rules are private sector clearinghouse rules which apply
to the exchange of electronic
check transactions between ECCHO Member financial institu-
tions.
11. When converting a check to Authorization Requirements:
an ARC, POP, or BOC ARC: Notice must be provided to Receiver
transaction, what are the au- POP: Authorization must be on the receipt signed at time of
thorization requirements? purchase
BOC: Signage & written notice at time of payment (Ex: At the
check-out or where check is
presented as "source document" to the Originator)
12. Expedited Funds Availability Known as Reg CC
Act also knows
2/5
Guide 2024-2025
1. What is the purpose of Reg CC To implement to Expedited Funds Availability Act and the Check
21
2. What did Check 21 Act do Faciliate check truncation by authorizing substitue checks, Fos-
ter innovation in the check collection system without madating
receipt of checks in electronic form, Improve the overall eflcien-
cy of the Nations Payments system.
3. What is the purpose of the Prescribe uniform principles, standards, and report forms for
FFIEC? the federal examination of
financial institutions by:
Board of Governors of the Federal Reserve System (FRB)
Federal Deposit Insurance Corporation (FDIC)
National Credit Union Administration (NCUA)
Oflce of the Comptroller of the Currency (OCC), and
Consumer Financial Protection Bureau (CFPB)
4. What is the purpose of the Simplify, clarify, and modernize the law governing commercial
Uniform Commercial Code? transactions
Permit the continued expansion of commercial practices
through custom, usage, and
agreement of the parties
Make uniform the law among the various jurisdictions.
5. What do the provisions of Arti- Negotiable Instruments
cle 3 cover
6. In the event of inconsistent In general, Federal law preempts State law in cases of inconsis-
provisions, which check rules tency -
or
regulations prevail?
7.
1/5
, National Check Payments Certification (NCP) Exam Study
Guide 2024-2025
What options are available in Either Federal Reserve or Private Sector Rules (Clearing House
the U.S. for image exchange or unique agreement) options
rules coverage? exist for image exchange rules coverage in the U.S.:
8. Does Check 21 provide legal No. Check 21 only provides legal recognition and equivalency of
rules or address check image substitute checks. Additional
exchanges between banks? agreements and/or rules are required for image exchanges.
The Act does not govern image
exchanges, and therefore image exchanges still need to be
performed under agreement
between the parties.
9. According to the Federal Re- The Federal Reserve Banks Operating Circular No. 3 (OC3) out-
serve Operating Circular No. lines eligibility for both paper
3 and image cash letters in terms of cash items or non-cash items:
(OC3), what items are eligible
for image exchange?
10. What are the ECCHO Rules? ECCHO Rules are private sector clearinghouse rules which apply
to the exchange of electronic
check transactions between ECCHO Member financial institu-
tions.
11. When converting a check to Authorization Requirements:
an ARC, POP, or BOC ARC: Notice must be provided to Receiver
transaction, what are the au- POP: Authorization must be on the receipt signed at time of
thorization requirements? purchase
BOC: Signage & written notice at time of payment (Ex: At the
check-out or where check is
presented as "source document" to the Originator)
12. Expedited Funds Availability Known as Reg CC
Act also knows
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