Check 21

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Check 21

Shorthand for the Check Clearing for the 21st Century Act; legislation that allows faster processing of checks by financial institutions by allowing them to process images rather than physical pieces of paper. The law also allows the creation of substitute checks that are processed immediately.

References in periodicals archive ?
The Check 21 Act of 2004 legalized the creation of digital versions of paper checks for processing and spells out a variety of rules required for check-imaging.
It includes the Check 21 Act, the Credit Card Act of 2009, and the 2010 revisions on debit cards under Regulation DD, as well as the amendments of the ACH regulations that led to widespread check conversion in which paper checks carry out electronic funds transfers.
The Check 21 Act enables banks to handle more checks electronically so they can process them more quickly and efficiently (Check 21 Act, [section]2).
Check 21 Act [section] 2 ("In the Expedited Funds Availability Act.
Check imaging solutions have advanced rapidly in the six years since the Check 21 Act took effect.
12, 2001, at 6A (emphasis added); see also More Consumers Prefer, supra note 61; Check 21 Act, 12 U.
The remote check imaging system is compliant with the Check 21 Act, a law designed to reduce and ultimately eliminate paper check processing, according to Mark R.
Soon after, Congress decided to take advantage of modern technology by passing the Check 21 Act.
Both the Check 21 Act and the EFAA preempt state law, including the Uniform Commercial Code as it is in effect in any state, unless the state law was in effect on September 1, 1989, and provided a shorter availability period than the EFAA.
The detailed provisions of the Check 21 Act incorporate a framework that includes the definition of substitute checks, the establishment of a new negotiable instrument, and an agreement that a substitute check is a paper reproduction of the original check and can be processed as such.
In addition, Setting Your Financial Records Straight, was recently modified to accommodate the Check 21 Act.
The Check 21 Act was enacted on October 28, 2003, and becomes effective on October 28, 2004.