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The "Check Clearing for the 21st Century
Act" or Check 21, was enacted in 2004 to increase the
efficiency
of the check-clearing process and to mitigate the risks of
potential threats or disasters to the nation's transportation
system. Its purpose is:
- To improve the overall efficiency of the payment system
- To facilitate check truncation by authorizing substitute
checks
- To foster innovation in the check payment system without
mandating the receipt of electronic checks.
Check 21 authorizes financial institutions to create a new
negotiable instrument, a "substitute check," commonly
referred to as an image replacement document (IRD). Basically,
Check 21 makes a substitute check the legal equivalent of
the original paper check. The Act applies to all types of
checks, both consumer and commercial.
A substitute check is a paper document that contains an image
of the front and back of the original check and includes the
MICR (magnetic ink character recognition) line. The substitute
check bears a legend that states, "This is a legal copy
of your check. You can use it the same way you would use the
original check."
What Check 21 Means
for Our Customers
In the short-term, you will not see changes in the way Cole
Taylor Bank provides service to you. Once Check 21 becomes
fully effective, if you receive checks images with your statement
now, you will continue to receive check images. However, these
images may look slightly different in the future.
We will continue to provide you with updates
regarding Check 21. Be assured that Cole Taylor Bank is formulating
a sound strategy to respond to this new check-clearing environment,
and we will harness the best efficiencies the Act provides
to assist our customers in the best way possible.
(Business Insights,
September 2004)
Checks
are Changing: Check 21 Customer Information (pdf brochure
- September 2004)
pdf
brochure - September 2004)
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Contact
a banker now
for more information. Or call us at 847-653-7978.
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Copyright 2007 |
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