Certified Regulatory Compliance Manager (CRCM) — Question 175

In Receiver's agreement-12 CFR 210.28 it is clearly mentioned that:

Answer options

• A. Receiving bank authorizes the Reserve Bank to credit the receiving bank's account
• B. An off-line bank warrants to the Reserve Bank that it does not act as an intermediary bank or a beneficiary's bank for payment orders received for a beneficiary that is a bank, unless the off-line bank notifies the Reserve Bank in writing
• C. A Reserve Bank has rights of a creditor to recover an overdraft, including the right of set off
• D. Reserve Banks, when acting as beneficiary's bank, payment order that identifies the beneficiary

Correct answer: A, B

Explanation

Option A is correct because it states the authorization of the Reserve Bank by the receiving bank. Option B, while accurate, does not directly address the primary focus of the agreement. Options C and D pertain to different aspects of the Reserve Bank's rights and functions, which are not the main point of this specific agreement.