A Sender and Any Prior Collecting Banks Grant a Security

question 98

Multiple Choice

A sender and any prior collecting banks grant a security interest to the sender's administrative Reserve Bank in all of their respective assets in the possession of the Reserve Bank to secure any of their obligations to the Reserve Bank. This security interest attaches when any warranty is breached or any obligation to the Reserve Bank is incurred. The Reserve Bank may take any action under applicable law to enforce its security interest; including exercising its right to set off amounts against any funds it holds. This situation holds true when:

• A) Item is sent to a Reserve Bank
• B) Reserve Bank recovers
• C) Bank makes for a substitute check
• D) Sender identifies liability to Reserve Bank

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Definitions:

"I" Message

A communication technique that focuses on the speaker's feelings and perspectives rather than placing blame, intended to reduce defensiveness in conversations.

Specific Behavior

A particular way of acting or conducting oneself that is identifiable and distinct.

Tangible Effect

A clear and definite impact or result that can be physically observed or measured.

Barriers

Obstacles that prevent movement, access, or progress.