Certified Regulatory Compliance Manager (CRCM) — Question 157

The Reserve Bank may recover from the sender the attorneys' fees if an action is brought against a Reserve Bank on the basis of:

Answer options

• A. Failure of sender to have authority to make the required warranties and agreements
• B. Any action by the Reserve Bank within the scope of its authority in handling the item
• C. Any warranty made by the Reserve Bank
• D. All of the above

Correct answer: D

Explanation

The correct answer is D because all listed scenarios can lead to the Reserve Bank seeking recovery of attorneys' fees from the sender. Option A refers to a failure of authority, B relates to actions within its scope, and C addresses the warranties made by the Reserve Bank, all of which justify the Bank's recovery of fees.