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 Clearing for the 21st Century Act (Check 21 Act), P.L.
(88.) 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.
These include "substitute drafts," as defined and permitted by the "Check 21 Act," and electronic payroll deposits, (28) both of which are facilitated online, and which should logically result in expansion of the covered "area" to include cyberspace--at least for the purposes of appropriate setting regulation.
"Check 21 Act," by the United States Government Accountability Office, 2008.
A more detailed discussion of our scope and methodology, and a discussion of our results, is contained in our report "CHECK 21 ACT: Most Consumers have Accepted and Banks are Progressing Toward Full Adoption of Check Truncation," GAO-09-8 (Washington, D.C.: October, 2008).
Remote deposit became possible in 2004 with the passing of the Check Clearing for the 21st Century Act (or Check 21 Act) which allows a digital image to substitute for a paper check.
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.
The "Check 21 Act brings check processing from the Pony Express era to the computer age".