Unfortunately, as those involved with check and draft handling are aware, the current Reg CC holds only provide financial institutions minimal protection from fraud losses. Therefore, at that time Reg CC could be affected, but there is no way to know what those changes will be right now. One of the provisions of the Check Truncation Act (Section 16) says within 30 months of the effective date, the Federal Reserve Board should submit a report and recommendations to Congress on what changes need to be made to the EFAA. Additionally, this regulation will impact the Expedited Funds Availability Act, including Reg CC, the regulation dealing with the holds that may be placed on deposited funds. That electronic image can be reconverted into a substitute check that, if it conforms to the law's standards, is the legal equivalent of a paper check and must be accepted as such. Paper checks can be truncated (converted to electronic images) at any point in the check-clearing process. One of the Act's stated intents is to make funds available to consumers more quickly.Īt the core of the Check 21 Act is the use of "Image Replacement Documents", in other words, a substitute check. This new law calls for implementation within 12 months, so it will go into effect on October 28, 2004. On October 28, 2003, President Bush signed the Check Truncation Act, also known as Check 21.
2022 Lending Compliance Triage Conference.2022 Operations Compliance Triage Conference.
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