CHECKS ARE CHANGING 
legal disclosure

Check processing will soon become more efficient. 
Here's what you should know about it.

 
WHAT IS CHECK 21?

Check 21 is the shortened name for new banking legislation enacted by Congress in October 2003. The law, formally called the "Check Clearing for the 21st Century Act," is intended to modernize the way banks process checks with the long-term goal of eliminating the physical transportation of checks between banks and the Federal Reserve.

Why Was It Necessary?

 The process of exchanging checks between the depositing bank and the paying bank is time consuming and labor intensive. Reliance on air and ground transportation means it can take up to seven days for a check to make its way through the system. 

The good news is that this effort to modernize the system will result in many benefits to consumers and banks alike. 

What does it do? 

Check 21 enables banks to scan your original check and process it electronically by creating a substitute check. Under the new law, the substitute checks must be a replica of your original check including the front and back along with the endorsements and a legend that states that the substitute check is the legal equivalent of your original check. 

When does this occur? 

Beginning October 28, 2004, every bank in the country will be required to accept substitute checks in the same way that they now accept original paper checks. 

Is check imaging new? 

No, banks around the country have been imaging checks for over a decade. We are experts at it and have been scanning and providing imaged statements to our customers for years. We have put the infrastructure in place to easily adapt to this new law. 

CHECK 21 BENEFITS 

CHECKS WILL CLEAR FASTER 
Checks will be processed in a fraction of the time it has taken in the past, which will make your account balance more accurate. Now, more than ever, please ensure that you have adequate funds available in your account when you write a check. 

FRAUD WILL BE REDUCED 
Banks will be able to more quickly identify fraudulent items preventing further fraud and minimizing customer inconvenience. 

HOW DOES IT AFFECT ME? 

When you write a check for goods or services, the merchant or bank that deposits your check may choose to truncate it. That means, they may scan an image of the front and back of your check and then destroy the original. 

The image of your check, along with information encoded at the bottom of your original check, is then sent to us for payment. 

When you receive your statement, you may occasionally see an image of a substitute check. To ensure readability of any substitute checks on your statement, we will reduce the number of check images per page beginning with your September 2004 statement.

If you view your cancelled checks online, you may begin seeing images of substitute checks online in lieu of the original check image.

FREQUENTLY ASKED QUESTIONS 

Q. Will Check 21 cost me anything?

A. No, there is no charge to customers for creating substitute checks. There may be a charge if you need us to research your account or provide a copy of your substitute check.. In fact, Check 21 will actually benefit you in many ways including faster check clearing, reduced fraud, and less paper. The result -- better banking for you. 

Q. Can I get my original check back? 

A. No, if a substitute check of your original is created, your original check will be destroyed. However, you won't need your original because the substitute is the legal equivalent for all purposes including any provision of State or Federal law. It can be used in the same way as your original check. 

Q. Can I opt out?

A. No, neither consumers nor financial institutions are allowed to opt out of this Federal law. Consumers and banks will be required to accept substitute checks in lieu of the original. 

Q. What does a substitute check look like? 

A. A substitute check is a replica of your original check - front and back including all endorsements, and a legend that states that the substitute is the legal equivalent of your original check. Click the thumbnail image below to view. 

(Click to enlarge)

MORE INFORMATION 

For additional information about Check 21 and how it may affect you, call (614) 583-2200 and ask to speak with one of our Check 21 experts. 

We'll be glad to explain Check 21 or answer any questions you might have about how it might affect your accounts with us.