Check 21

On December 21, 2001, the Federal Reserve Board unveiled draft legislation on Check 21. It was introduced into the House on March 27, 2003, and discussed in the Senate Banking Committee April 3, 2003. It was signed by President Bush on October 28, 2003. Check 21 will take effect on October 28, 2004.

Check 21's objective is to improve the overall efficiency of the nation's payments system. The legislation removes legal barriers to check truncation by permitting banks to truncate original checks, to process the check information electronically, and to print and deliver 'substitute checks' (also called image replacement documents) to banks and to bank customers who want to continue to receive paper checks. For more general information on what Check 21 does, how it works, the benefits and expected costs, please read Check 21: What Does It Mean to Bankers and Consumers? (PDF,31KB)

News

In the News: September (PDF,25KB)

Board Releases Final Amendments to Regulation CC to Implement Check 21 Act (PDF,576KB)
In a press release, the Board announced final amendments to Regulation CC and its commentary. The amendments:
1) set forth the requirements of Check 21 that apply to banks;
2) provide a model disclosure and model notices relating to substitute checks; and
3) set forth bank indorsement and identification requirements for substitute checks.

2003 Federal Reserve Bank of Chicago Annual Report
The main article of this annual report was written by Victor Stango, Carrie Jankowski and Tom Ciesielski. (PDF,1.3MB)

Regulation CC Model Forms July 2004 (PDF,126KB)

Other resource links

Check 21: Stepping Up To the Plate  (PDF,2.65KB) by Tony Stallings

Investing in Imaging (PDF,33KB) by Chris Costanzo

Transition Quandry by Kenneth Cline

Electronic Check Clearing House Organization (ECCHO)

Articles/Presentations

Check 21 Presentation (PDF,393KB) by Tara Rice and Ian Dew-Becker

Check 21: The Details (PDF, 38KB) by Ian Dew-Becker