The Check 21 Clearing for the 21st Century Act Check 21:

In October 2004 you will begin to see “substitute checks.” This is a new type of payment document used for clearing and settlement. An electronic image will be treated the same as a paper check. 

With Check 21, a picture of the check or a legal “substitute check” will be transferred electronically, rather than transported by truck, train, or plane. The benefits of Check 21:

• Checks will clear faster

• Check fraud will decrease

• Security will increase

• Check processing will cost less

As the government and credit unions prepare for the full implementation of Check 21 you will be hearing more. As required by law we will provide you with more in-depth information about your rights and responsibilities. There are things you should know in the meantime:

• A “substitute check” contains an image of the original check. You can use it in the same way you would use the original check

• Substitute checks are required to accurately represent all the information on the front and back of the original check.

• Substitute checks are the legal equivalent of an original check for all purposes, including any provision of state or federal law.

• Members who believe a substitute check was not processed correctly may be entitled to a credit for the amount of the check after a complete investigation.

• The credit union is required to investigate any claim and in most cases either resolve the claim within 10 business days, or provide a re-credit up to $2,500.00, pending completion of the investigation. Final determination must be made within 45 days.

• With Check 21, your checks will clear your account much quicker.

Check 21 is a new era of efficiency and service for the 21^st century.

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