Substitute Checks definition

Substitute Checks. To make check processing faster, federal law permits credit unions and banks to replace original share drafts (original checks) with “substitute checks.” These checks are similar in size to original checks, with a slightly reduced image of the front and back of the original check. The front of a substitute check states: “This is a legal copy of your check. You can use it the same way you would use the original check.” You may use a substitute check as proof of payment, just like the original check. Your rights regarding substitute checks: In certain cases, federal law provides a special procedure that allows you to request a refund for losses you suffer if a substitute check is posted to your account (for example, if you think that we withdrew the wrong amount from your account or that we withdrew money from your account more than once for the same check). The losses you may attempt to recover under this procedure may include the amount that was withdrawn from your account and fees that were charged as a result of the withdrawal (for example, bounced check fees).

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Substitute Checks. A substitute check is an electronic image of the original paper check or draft. The check image is then electronically transferred for collection purposes. These electronic images are known as “substitute checks”. The electronic conversion from paper to “substitute check” permits quicker processing of checks by sending them electronically from financial institution to financial institution for collection. This means that substitute checks will clear faster than did your paper checks or drafts. We accept and process incoming substitute checks to your account, and generate substitute checks from original paper checks and drafts for outgoing collection. This means that checks that you write and checks that you deposit may be converted to substitute checks.

Substitute Checks means substitute checks as defined in Regulation CC.

Examples of Substitute Checks in a sentence

• For information on errors relating to a substitute check you received, refer to your disclosure entitled Substitute Checks and Your Rights.

• Items may be returned as Image Exchange Items, rather than Substitute Checks.

• Bank is not liable for any Substitute Checks that may become lost in the mail.

• The manner in which Substitute Checks are cleared, presented for payment and deposited will be determined by the Bank, in Bank’s sole discretion which may change, modify, add or remove functionality from Mobile Deposit at any time, with or without notice to you.

• See “Substitute Check Policy Disclosure” in this Agreement for further information on Substitute Checks.

• Items may be returned as Image Exchange Items, rather than Substitute Checks, as agreed by the parties.

• Once accepted, we will process your Eligible Items electronically or converted to Substitute Checks based on the information you provide.

• Substitute Checks, Indemnified Copies, Images and Image Replacement Copies In some cases, we may receive an indemnified copy of your original check, an image replacement document (IRD), a substitute check or an image of your check, instead of the original item.

• Bank will use commercially reasonable efforts to present Image Exchange Items and Substitute Checks for collection.

• The manner in which Substitute Checks are cleared, presented for payment and deposited will be determined by the Bank, in our sole discretion.

More Definitions of Substitute Checks

Substitute Checks. As defined in 12 CFR Part 229 Subpart D.

Substitute Checks. A substitute Check is a paper reproduction of an original Check that conforms to the requirements of the Check Clearing for the 21st Century Act, commonly referred to as the “Check 21 Act.” You agree not to deposit any substitute Check or similar credit that you have created, or for which no financial institution has provided any substitute check warranties and indemnity. If you do so, you agree to indemnify us for all losses we incur in connection with the substitute Check or credit. We may pay any substitute Check, even if there is an error or defect that occurs in the creation or transmission of the substitute Check.

Substitute Checks. To make check processing faster, federal law permits credit unions and banks to replace original share drafts (original checks) with “substitute checks.” These checks are similar in size to original checks, with a slightly reduced image of the Your rights regarding substitute checks: In certain cases, federal law provides a special procedure that allows you to request a refund for losses you suffer if a substitute check is posted to your account (for example, if you think that we withdrew the wrong amount from your account or that we withdrew money from your account more than once for the same check). The losses you may attempt to recover under this procedure may include the amount that was withdrawn from your account and fees that were charged as a result of the withdrawal (for example, bounced check fees).

Substitute Checks. Check Clearing for the 21st Century (“Check 21”) enables financial institution to send checks to each other electronically, and enables the credit union to receive a paper copy of the electronic check (called a “substitute check”). Substitute checks are the legal equivalent of a paper check for all purposes. The credit union is not required to create substitute checks, but must accept them.

Substitute Checks. To make check processing faster, federal law permits credit unions and banks to replace original share drafts Your rights regarding substitute checks: In certain cases, federal law provides a special procedure that allows you to request a refund for losses you suffer if a substitute check is posted to your account (for example, if you think that we withdrew the wrong amount from your account or that we withdrew money from your account more than once for the same check). The losses you may attempt to recover under this procedure may include the amount that was withdrawn from your account and fees that were charged as a result of the withdrawal (for example, bounced check fees).