Quiz for B2B: Regulation J Overview

1. Regulation J provides the legal framework for depository institutions to collect checks and other items and to settle balances through the Federal Reserve System.

2. Regulation J is set forth by the Federal Reserve to establish the core guidelines for which of the following:

3. Which subpart of the regulation addresses the Collection of Checks and Other Items By Federal Reserve Banks?

4. Senders Liability Reserve Bank – The __________________ agrees to indemnify each Reserve Bank for any loss or expense sustained, including attorneys’ fees and expenses of litigation, resulting from the sender’s lack of authority to make the warranty, any action taken by the Reserve Bank within the scope of its authority in handling the item; or any warranty or indemnity made by the Reserve Bank under this Regulation, the U.C.C., or regarding the sending of items as outline in the operating circular.

5. A claim against a Reserve Bank for lack of good faith or failure to exercise ordinary care shall be barred unless the action on the claim is commenced within _____________________ after the claim accrues.

6. If a Reserve Bank does not receive payment in actually and finally collected funds for an item, the Reserve Bank shall recover by charge-back or otherwise the amount of the item from the sender, prior collecting bank, paying bank, or returning bank from or through which it was received, whether or not the item itself can be sent back.

7. On July 20, 2023, The Federal Reserve Officially launched the FedNow Service.

8. ____________________________ specifies the terms under which the Federal Reserve Banks will accept checks and other items for collection and present them for collection to the institutions upon which they are drawn. It also establishes guidelines for the return of unpaid checks, and the receipt and delivery of funds via Fedwire.

9. Regulation J is divided into how many main subparts?

10. Each Reserve Bank must receive and handle items in accordance with the regulation and issue operating circulars governing the details of its handling of items and other matters deemed appropriate by the Reserve Bank.