The sender agrees to indemnify each Reserve Bank for:
The sender agrees to indemnify each Reserve Bank for:
The sender agrees to indemnify each Reserve Bank for any loss or expense resulting from the sender's lack of authority. Additionally, the sender indemnifies the Reserve Bank for any actions taken by the Reserve Bank within the scope of its authority in the handling of the item. Furthermore, any warranty made by the Reserve Bank under Regulation J, Regulation CC, or the UCC is also covered by the sender's indemnification. These provisions ensure that the sender takes responsibility for their own actions and lacks of authority, as well as guarantees the Reserve Bank's protection when acting within its official capacity.
A, B and D per page 613.
The correct answer is A. Any loss or expense resulting from the sender's lack of authority. In the context of financial transactions processed by Reserve Banks, the sender's agreement to indemnify the Reserve Bank typically includes covering any loss or expense that arises due to the sender's lack of authority to initiate or execute the transaction. This indemnification ensures that the Reserve Bank is protected against potential liabilities resulting from actions it undertakes based on instructions or items received from the sender, under the assumption that the sender has the requisite authority and legitimacy to initiate those transactions.