By presentation or transmission of an item a Reserve Bank warrants to a subsequent collecting bank and paying bank that:
By presentation or transmission of an item a Reserve Bank warrants to a subsequent collecting bank and paying bank that:
When a Reserve Bank presents or transmits an item, it warrants to any subsequent collecting bank and paying bank that it has good title to the item, the item has not been altered, and the item bears all endorsements applied by parties that have previously handled the item in paper or electronic form. Therefore, the correct answer is that all these conditions are warranted by the Reserve Bank.
The correct answer is D. All of these. When a Reserve Bank presents or transmits an item, it warrants to any subsequent collecting bank and paying bank that it has good title to the item, the item has not been altered, and the item bears all endorsements applied by parties that have previously handled the item, whether in paper or electronic form. These warranties are essential to ensure the integrity, trust, and efficiency of the banking and payment system, allowing banks to rely on the validity, authenticity, and proper endorsement of items as they are processed and collected.