Member Services and Account Operations
This domain tests operational accuracy: account ownership structures, transaction processing, and member-facing service standards. Candidates must distinguish individual, joint, payable-on-death (POD), trust, and business accounts. Joint accounts generally carry survivorship rights and right of withdrawal; POD accounts pass to named beneficiaries on death without probate. Traps appear when questions ask who owns funds: ownership is determined by the account agreement and titling, not by who made deposits.
Know share accounts vs. share draft (checking) accounts, and the distinction between a share certificate (term deposit) and a regular share account. Understand Regulation D historically limited certain transfers from savings, but the Federal Reserve removed the six-transfer limit from its rules - many credit unions still impose their own limits, so read the stem carefully. Regulation CC governs funds availability and holds; Regulation E governs electronic transfers and error resolution.
Operational concepts: check negotiation and endorsement rules, stop payments, dormant/inactive accounts and escheatment, and the account opening documentation (signature card, CIP information). Member service standards include clear fee disclosure and prompt error resolution.
Worked example: A member deposits a $5,000 check at a branch. Under Reg CC, the first $225 (as adjusted) is generally available next business day, with the remainder available within a specified period depending on the check type - but exceptions and case-by-case holds can extend availability for large deposits or repeated overdrafts. The exam trap is assuming all funds are immediately available.
Also watch for confusion between escheatment (unclaimed property to the state) and dormancy (internal status), and between stop payment (member-initiated) and returned item (bank-initiated).