Check 21. The Check Clearing for the 21st Century Act , the implementing Check 21 regulations located in Subpart D to Federal Reserve Board Regulation CC, and other applicable provisions of Regulation CC.
Check 21. What is a substitute check? -To make check processing faster, federal law permits banks and credit unions to replace 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. Some of all of the checks that you receive back from us may be substitute checks. This notice describes rights you have when you receive substitute checks from us. The rights in this notice do not apply to original checks or to electronic debits to your account. However, you have rights under other law with respect to those transactions. What are 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 The losses you may attempt to recover under this procedure may include the amount that was withdrawn from your account and fees that were charged as a result of the withdrawal (for example, Insufficient/Uncollected/Overdraft paid or returned fees). The amount of your refund under this procedure is limited to the amount of your loss, or the amount of the substitute check, whichever is less. You also are entitled to dividends on the amount of your refund if your account is a dividend-bearing account. If your loss exceeds the amount of the substitute check, you may be able to recover additional amounts under other law. If you use this procedure, you may receive up to $2,500.00 of your refund plus dividends if your account earns dividends) within 10 business days after we received your claim and the remainder of your refund (plus dividends if your account earns dividends) not later than 45 calendar days after we received your claim. We may reverse the refund (including any dividend on the refund) if we later are able to demonstrate that the substitute check was correctly posted to your account. How do your make a claim for a refund? If you believe that you have suffered a loss relating to a substitute check that you received and that was posted to your account, ...
Check 21. Check Clearing for the 21st Century Act, which may be amended from time to time.
Check 21. You may not use any checks that contain a background image, latent security feature, paper stock, ink or other characteristic that interferes with our or any other bank’s ability to produce a digital image of your check. If you do, you will be responsible for any losses you or another person suffers because of the inability to produce a readable digital image of your check. You will defend and hold us harmless from any Check 21 Act warranty, indemnity or expedited re-credit claim. See Section III D 1 of this Agreement for more information about Check 21 and how it applies to your Account.
