Accredited ACH Professional (AAP) Practice Exam

The Wire Transfer Payment System is governed by UCC 4A and Regulation J due to the nature of the transactions involved in wire transfers. UCC 4A provides a legal framework specifically addressing the rights and responsibilities of parties involved in wire transfers, including the communication and execution of these transfers. This includes provisions for the authorization, processing, and settlement of wire transfers. Regulation J complements UCC 4A by governing the Federal Reserve’s role in the collection and settlement of funds transferred via wire systems, particularly with respect to the operations of the Federal Reserve Banks. Regulation J is crucial in outlining how the transfers are processed and the legal implications for the entities involved. Other payment systems, such as checks and ACH payments, are governed by different regulations and codes. For instance, the ACH Payment System operates under Regulation E and NACHA rules, while the Check Payment System is primarily governed by UCC Articles 3 and 4. The Card Payment System follows regulations that pertain to card networks and consumer credit, making the governance structure distinct from that of wire transfers. Thus, the specific application of UCC 4A and Reg J exclusively to the Wire Transfer Payment System is what makes it the correct answer.