Important News For Our Checking Account Customers

A new federal law which became effective October 28, 2004 - the Check 21 Act - necessitates some changes in the way your paid checks are handled. It will permit any person or entity that processes a check to create what the Act calls a "substitute check" - an electronic image (front and back) of the original check. Once a substitute check is created, the original check is "truncated" or taken out of circulation. As a result, customers may notice that some of the images of the checks that they receive in their statements or view online may look different.
The changes brought on by Check 21 will improve check collection by automating many high-touch procedures. The result will be faster, more efficient clearing and posting of check payments.

What, exactly, is a "substitute check"?

A substitute check is a legally sanctioned document, with all the rights and obligations given the original check written from your checkbook. Substitute checks are paper copies created from electronic images of original paper checks (front and back, with all endorsements).

Does Check 21 preempt state law?

Check 21 supersedes any state law, including provisions of the Uniform Commercial Code or state laws that are inconsistent with this new federal law. Thus, state laws (Massachusetts and New York) that say that customers are entitled to receive paid original checks back with their statements are unenforceable.

What will I get back with my statement?

Not all checks you write will be transformed into substitute checks. However, beginning October 28, 2004, if a substitute check is created, the images included with your monthly statement could comprise a combination of images of original checks and images of substitute checks. You will probably see very few substitute checks when the law becomes effective, but over time, more of your cancelled checks will be replaced by substitute checks.

What if I need a copy of a substitute check?

You may obtain a copy the same ways you would any check: Just contact us at the customer service phone number listed on your bank statement or by visiting the branch.
What if there's an error involving a substitute check?
If you think there is an error, contact us immediately at the customer service phone number listed on your statement.

What are the implications for my account management practices?

Implementation of Check 21 does not ensure that checks will be processed more quickly or that funds will be available sooner. Checks you write could clear sooner, raising the possibility that some checks may be returned NSF if there were non-sufficient funds in the account when you wrote the check. You should not write checks for amounts that can't be covered by funds already in your checking account.