Certified Regulatory Compliance Manager (CRCM) — Question 162

Time to bring action against a Reserve Bank:

Answer options

• A. Claims against Reserve Banks for failure to act in good faith or exercise ordinary care must be brought within two years
• B. Claims against Reserve Banks for warranties given on electronic items that are not substitute checks must be brought within one year
• C. Claims against Reserve Banks for guarantees given on electronic items that are not substitute checks must be brought within one year
• D. Claims against Reserve Banks for failure to act in good faith or exercise ordinary care must be brought within three years

Correct answer: A, B

Explanation

The correct answer is A, as it correctly states the two-year limit for claims against Reserve Banks regarding good faith and ordinary care. Option B is also accurate regarding the one-year limit for warranty claims, but it is not the primary focus of the question. Options C and D provide incorrect timeframes for their respective claims, making them invalid.