Cumulative level test: After signature: funding the wire, collecting the debit, releasing the lien, and proving the file at ninety days

Check understanding, separately from reading

12 questions · 80% to pass · no timer. This longer test revisits both units in the level. These authored questions assess recognition and application of the taught distinctions, not professional qualification. You may review the lessons and retry. Repeat attempts reuse the question bank; a remembered answer is not proof of transfer to a new situation.

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Question 1

A settlement sheet shows $150,000.00 approved, $46,207.05 of cash deductions and a $7,500.00 escrow. Write the two numbers the merchant needs and the one number that must never be quoted alone.$96,292.95 reaches the account, $103,792.95 is available once the escrow is released, and the approved $150,000.00 must never be quoted alone because every deducted dollar is borrowed at the 1.34 factor, making the price $52.96 per $100 of net wire against $34.00 per $100 of the approved amount.$150,000.00 is the funding amount and the deductions are transaction costs, so the merchant's cost is the $51,000.00 of the factor and the escrow is a fee that reduces the effective proceeds.

Question 2

A debit is returned R02, account closed, on a file with 30 of 40 weekly debits outstanding. The servicer's clerk re-presents it the following week. What is wrong, and what is the consequence under a two-returns-in-ninety-days default clause?The re-presentment is permitted because a closed account can reopen, and the default clause needs two returns on the same debit rather than two returns in the period.An R02 cannot be re-initiated at all, so the re-presentment is itself a rules breach and the second return is the second return in ninety days, which triggers the default clause; the remaining balance of $154,440.00 plus a $1,500.00 default fee becomes demandable, and the guarantor is exposed on $155,940.00.

Question 3

A payoff is wired two days late, leaving $165.78 outstanding, and the merchant's lawyer demands a termination statement. What are the secured party's duties and what is the merchant's remedy if it does nothing?The duty to send or file a termination statement runs within twenty days after an authenticated demand and only where no obligation is secured and no commitment to advance remains, so the $165.78 suspends the duty; the merchant's route is to clear the residual, demand again in writing, and, if the secured party still fails, claim the statutory damages plus actual loss.The duty runs from the date of payoff regardless of a residual balance, so the secured party is in breach after twenty days and the merchant can treat the financing statement as terminated without further steps.

Question 4

A merchant is notified that a 45 percent participation exists and is told to split its monthly payment. It asks you whether it can keep paying the servicer. What is the honest answer, and what document resolves it?It can keep paying the servicer because a participation is an internal arrangement between funders that does not change the merchant's payment obligation.It can keep paying the party it has been paying until a notification that reasonably identifies the assigned rights arrives, and after that it must pay the assignee; where the notification asks for less than the full instalment, the merchant may refuse the split and pay the full amount to one assignee, so the document that resolves the question is a single notification for the full instalment with proof of assignment attached.

Question 5

A renewal rolls a $57,960.00 balance and $60,000.00 of new money into a $117,960.00 base at 1.36 with a 3 percent fee taken from the new money. The broker calls it a 1.36 deal. Write the two sentences that correct him.The merchant receives $58,200.00 and owes $102,465.60 more than the balance, which is 176.06 per $100 of new money; the 1.36 applies to money already spent as well as money received, and the only honest comparison is the incremental obligation against the cash that moves.The 1.36 factor applies to the whole base, so the deal is priced at $36.00 per $100 and the merchant should compare it with the 1.38 on the original advance and conclude that the renewal is cheaper.

Question 6

A merchant with 92.65 percent debits to deposits and a 1.69 day turnover wants a Monday debit. What do you measure, and what do you recommend?Measure the monthly coverage ratio, which is 70.89 percent of net cash, and recommend the Monday debit because the monthly figure shows the merchant can afford it.Measure the day's debits against the settlements available that morning, including the T+2 lag on card receipts, and recommend a day after the largest settlement batch lands, because a 1.69 day turnover means the balance is a timing artefact and $42,820.00 of weekend settlements will not be there on Monday.

Question 7

A contract accelerates at will, waives a jury, and requires arbitration 1,900 miles away with a $12,500.00 deposit against a $9,400.00 claim. What may you say, and what may you not say?You may describe what each clause does, quantify the dispute cost at $31,950.00 and the 3.40 to 1 ratio, and recommend that the merchant have counsel read the forum clause before signing; you may not opine that the clauses are void or that the merchant will win, because acceleration at will is construed rather than struck and arbitration is generally enforced.You may tell the merchant the clauses are unenforceable, because a clause that makes a $9,400.00 claim cost $31,950.00 to bring is unconscionable as a matter of law.

Question 8

Three statement PDFs share a creation timestamp, the operating account is 41 days old, revenue rose 240.05 percent and the return shows exactly $116,400.00 more than the statements. The merchant offers to explain. What happens next?The advisor takes the explanation, asks for the statements that close the $116,400.00 gap, and submits once the deposits reconcile to the return, because a reconciled file is what underwriting needs.The submission stops, the indicators are recorded with their measurements and dates, the explanation is noted rather than solicited, and the file goes no further; the advisor does not ask for the missing statements, does not describe the merchant as a fraudster in writing, and does not mention any report a bank may or may not file.

Question 9

A complaint alleges a debit eleven days after payoff, another alleges an undisclosed fee, and a third alleges a call after an opt-out. Write the response plan and the process changes, and say what the 1.40 per 100 files rate does and does not tell you.Acknowledge each within three business days, preserve the authorisation, the payoff quote, the wire confirmation, the disclosure version and the opt-out record, answer the facts without admissions, and change three processes: cancel the authorisation at payoff, version-control the disclosure, and test the opt-out mechanism after day thirty; the rate tells you the volume and nothing about the causes, which are three different failures.Acknowledge each complaint, explain the contract terms, and record the 1.40 per 100 files rate as within tolerance, since three complaints across 214 files is a low base rate and each has a contractual explanation.

Question 10

At day ninety the bank shows fifteen debits, two returns and $140.00 of bank fees, and the servicer's ledger shows $66,924.00 collected against thirteen expected debits of $5,148.00. What reconciles, what does not, and what is the exception?Everything reconciles because $77,220.00 less $10,296.00 equals $66,924.00, and the fees are within the tolerance the audit sets for items under $250.00.The net bank movement of $66,924.00 reconciles to thirteen debits, but the two $50.00 return fees were collected and never credited, so the ledger overstates the balance by $100.00; the $140.00 of bank fees is the merchant's own cost and is not part of the obligation.

Question 11

You are handed a file where the settlement sheet omits the escrow from the deducted column and the comparison sheet divides total repayment by the approved amount. Which measure is wrong and by how much, and what is the second error?The comparison sheet's denominator is wrong: $51,000.00 over $150,000.00 gives $34.00 per $100, while over $96,292.95 it gives $52.96, so the sheet understates the price by $18.96 per $100; the second error is treating the $7,500.00 escrow as neither deducted nor available, which understates the merchant's liquidity by the same amount.The denominators agree because the factor is applied to the approved amount, so $34.00 per $100 is the contractual price and the escrow is a timing item that does not affect any measure.

Question 12

A file funded on 7 November is audited on 6 February after thirteen weekly debits. Name the three records the audit must reconcile and the one event that would make the whole schedule unenforceable.The bank statement and the ledger are enough, since the contract's schedule is fixed at closing and the only question is whether the merchant paid; an authorisation issue is a bank matter rather than a funding matter.The bank statement, the servicer's ledger and the contract's amortisation must reconcile, with fee lines shown separately from principal; the event that would undermine the schedule is an authorisation that does not name the party debiting the account after an assignment, because an unauthorised entry is returnable and the returns then feed the default clause.

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