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Check 21 Resource Center

President Bush has signed into law legislation (H.R. 1474) that will give substitute checks the same legal validity as the original paper checks. The Check 21 bill is intended to reduce the check payment system's dependence on physical transportation networks, and streamline the collection and return process. 

Check 21 toolboxAs your national trade association, ABA is pleased and proud to produce this toolbox for its members.

You've heard about the new Check 21 law. But do you know what it requires (and doesn't require) and what it means for you and your bank? That's where ABA's Check 21 Toolbox — the most recent in its series of toolboxes — can help. It tells you:

  • What you must do
  • What you may do (but aren't required to)
  • How to assess the risks and opportunities
  • How to explain it to your board, your customers, local reporters and others who may know just enough about it to be confused.

Download the Check 21 Toolbox now.

The Check Clearing for the 21st Century Act (Check 21) created new opportunities for financial institutions and their customers. But, the Act also created new operational and risk issues for financial institutions that take advantage of the opportunities and offer remote deposit capture to their customers, giving them the convenience of electronically depositing checks. With remote deposit capture, instead of physically transporting checks to a banking facility, customers are able to scan checks on image scanners maintained in their own offices and transmit the images to the financial institution via the internet or dedicated telephone lines. This page will initially offer you online resources to learn more about remote deposit capture. Check back often, as more information becomes available, the American Bankers Association will provide you with more resources so that your bank can evaluate whether you should offer your customers remote deposit capture, and will address regulations, laws, contracts, fraud detection, operations and other issues relevant to your decision making process. The resource links provided do not represent ABA endorsed solutions, but are provided as informational resources.

Legislative

Regulatory Guidance

On December 23, 2003, The Federal Reserve Board on 12/22/03 approved a proposed rule to amend Regulation CC and its commentary to implement the Check Clearing for the 21st Century Act (Check 21 Act).

The Board's proposed amendments: (1) set forth the requirements of the Check 21 Act that apply to banks; (2) provide a model disclosure and model notices relating to substitute checks; and (3) set forth bank endorsement and identification requirements for substitute checks. The proposed amendments also clarify some existing provisions of the rule and commentary.


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