Funds Transferred on the Clearinghouse Internet Payment System (CHIPS) Are

question 96

True/False

Funds transferred on the Clearinghouse Internet Payment System (CHIPS) are settled at the end of the day rather than intra-day as with the Fedwire system.

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Definitions:

Property Interest

A legal right or claim to a property, including ownership rights, use rights, rents, or other benefits deriving from the property.

Collateral

Property or assets pledged as security for repayment of a loan, subject to seizure by the lender in case of default.

Legally Enforceable

A term describing an agreement or contract that is recognized by legal authorities and can be upheld in court.

Security Interest

A legal claim or lien on collateral that has been pledged, usually to secure a debt or loan, affording the lender a right to repossession if the debtor defaults.