Certified Treasury Professional 2025 – 400 Free Practice Questions to Pass the Exam

The correct choice is tied to UCC Article 3, which addresses negotiable instruments. This regulation outlines the rights and responsibilities of parties involved in the use of negotiable instruments like checks. Under this article, once a check is deposited, the bank may provide immediate availability of funds, but it also holds the right to pursue payment if a dispute arises regarding the validity of the check or if there are other issues linked to the instrument.

The key aspect here is that UCC Article 3 governs the collection and dispute processes of negotiable instruments, establishing how parties can seek enforcement of their rights regarding payments involving checks. This regulation clarifies the procedures for handling disputes after checks are deposited, which is the core of the question.

In contrast, the other regulations mentioned do not specifically focus on the collection process post-deposit for disputed amounts. UCC Article 2 deals with the sale of goods and does not pertain to checks directly. Federal Reserve Regulation CC primarily addresses the availability of funds and governs the timing of funds availability from deposited checks, rather than the collection process of disputed amounts. UCC Article 4 deals with the responsibilities of banks regarding check collections and deposits but does not specifically address the situations surrounding disputes of amounts after the check has been deposited