The Check Clearing Act of the 21st Century is a new law passed by Congress to improve the overall efficiency of our nation's payment system. It will allow checks to be processed faster than ever. Beginning October 28, 2004 your monthly statement may include a new form of check called a "substitute check" (click to view image). It's part of an important change in the banking industry referred to as Check 21.

FREQUENTLY ASKED QUESTIONS
Will I continue to receive my checks back?
Yes. If you currently receive cancelled or image checks with your monthly statement you’ll notice very little difference. It may include some substitute checks after October 28th.

What is a substitute check?
Beginning October 28, 2004, you may receive a “substitute check” rather than an original cancelled or returned check. This is a legal copy of your check that can be used for proof of payment, the same way you would use the original check. It includes an exact image of the front and back of your check plus other identifying information.

Why create a substitute check?
Check 21 allows checks to be truncated, which means that the original paper check may be removed from the payment system and destroyed. The original check is scanned and can be transmitted electronically. This electronic image can be replaced with a substitute check.

Will I notice a change in my statement?
No, you will continue to receive images of your checks as usual.

How will Check 21 benefit me?
Faster check clearing – Funds may make their way through the system quickly and reduce the time you’ll wait for checks to clear.

• Improved check fraud protection – Faster settlement of checks means fraudulent activity can be detected sooner.
• More secure – Check 21 will help ensure the continuous flow of money in the event of natural and other disasters, like 9/11.
• Fewer delays – Checks transferred electronically may result in fewer transportation delays due to severe weather.
• Faster error resolution – Several consumer protections are built into the Check 21 Act to ensure the accuracy of your account.

What if I need to prove I paid for something?
No problem. Substitute checks are treated the same as the original check under both state and federal law. If you ever need a copy of your cancelled check, just ask. We can promptly provide you with a copy.

What if there is an error with a substitute check?
Consumers – For your protection, we will resolve any issue or re-credit your account, usually within 10 working days of a claim involving a substitute check received by consumers. Should you receive a substitute check, more information will be provided explaining the claim process.

Businesses – There is no change to the error claim process for business accounts.

Will Check 21 reduce float time?
Yes. Funds may make their way through the system very quickly. Now more than ever, make sure you have funds available in your account before you write a check to avoid overdraft charges.

Will there be a fee for substitute checks?
There are no additional fees anticipated as a result of Check 21 or substitute checks.

Will I always receive a substitute check when my original is not available?
Not always. Some retailers and other businesses may choose to convert your check into an electronic ACH payment. This means that the original check is not returned to the bank. Instead, it will appear on your statement just like a debit card item.

click above to view
substitute check sample

Substitute checks are the legal equivaletnt of the original check, for all purposes.

Checks may clear faster.

It's always a good idea to review your bank statements monthly.

Now more than ever, deposits should be made before checks are written to avoid overdraft charges.