Introduction

These guidelines are part of the Direct Deposit Processing Services agreement between a credit union and CU*Answers, to ensure that our policies and procedures are aligned with current industry standards for handling cash items.

Purpose

For the credit union’s protection as well as our own, CU*Answers requires that each credit union keep records that permit it to identify deposited items in the event items are lost or destroyed. If a credit union does not keep a record of items submitted to CU*Answers and those items cannot be recreated, the credit union assumes complete responsibility for those items. If the credit union does not agree to or fails to follow these procedures, the credit union agrees to the greatest extent permitted by law or regulation to assume the risk of and shall indemnify CU*Answers, its directors, officers, employees and agents and shall hold them harmless from and against any actions, suits, damages, judgments, costs, charges, expenses, attorney fees, and consequences of any liability, of any nature (“Losses”), incurred, made or suffered by any third party in connection with the furnishing of services, except for Losses due to the fraud or intentional act of the service provider.

Guidelines

All direct deposit checks forwarded to CU*Answers Item Processing must be prepared in the following manner:

1. There must be an identifying stamp on the back of each check prior to it leaving the CU. This stamp must contain enough information to trace the item back to the credit union in the event of a misrouted deposit. If using a teller stamp, it must contain the following information:
   • Credit Union Name and at least one of the following:
     • City and State
     • Phone Number
     • 9-digit ABA/Routing number, offset by arrows on each end pointing towards the number. Teller stamps must be placed in the bottom half of the back side of the check.

       If the credit union has an endorsement stamp that contains ALL of the following information as required by Reg. CC, the stamp can be placed in the endorsement area on the back of the checks.

       • The CU’s 9-digit routing number, offset by arrows on each end pointing towards the number
       • The bank’s name and location
       • The endorsement date
2. All deposits must be filmed/scanned by the CU before being released to the courier. Although CU*Answers Item Processing will assist the CU with any necessary reconstruction, it is the CU’s responsibility to provide copies of the checks in the event that they are damaged/destroyed before being archived by CU*Answers.If your CU films your checks but chooses to have the film developed for emergencies only, we strongly recommend that a roll of film be developed and viewed regularly to ensure that the filmer is working properly.
3. A transmittal sheet must accompany each deposit. CU*Answers will not process a deposit without a prepared transmittal sheet listing each bundle and the total dollar amount of the deposit.
4. CU*Answers Item Processing staff must verify delivery of every deposit received. If the transmittal sheet is wrapped around the checks with the blank side showing, the name of the CU must be written on the back of the transmittal.
5. All direct deposits must be sealed in an envelope, canvas bag, or plastic bag clearly addressed to CU*Answers Item Processing. Envelopes and opaque bags should also have a return address.
6. A completed courier- bill of lading must accompany each deposit. The CU name, address and number of bags/envelopes should be written on the bill of lading.