By presentation or transmission of an item a Reserve Bank warrants to a subsequent collecting bank and paying bank that:
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A. B. C. D.D
The presentation or transmission of an item by a Reserve Bank implies a warranty to the subsequent collecting bank and paying bank. This warranty has three parts, which are:
A. The Reserve Bank has good title to the item: This means that the Reserve Bank has the legal right to transfer the item and has not received it through any fraudulent or unauthorized means. Essentially, the Reserve Bank guarantees that it is not transferring a stolen or forged item.
B. The item has not been altered: The Reserve Bank also warrants that the item has not been tampered with or altered in any way. This includes any physical or digital changes that could affect the item's value or legitimacy.
C. The item bears all endorsements applied by parties that have previously handled the item in paper or electronic form: This means that all necessary endorsements or signatures required to transfer the item have been applied to it. The Reserve Bank guarantees that the item has been properly endorsed, and the subsequent collecting bank and paying bank can rely on these endorsements.
Therefore, the correct answer to the question is D. All of these. The Reserve Bank warrants that it has good title to the item, the item has not been altered, and it bears all necessary endorsements from previous parties.