What Is Check 21?
The Check Clearing for the 21st Century Act (Check 21) is designed to speed up and reduce costs involved with the check cashing process. Over 40 billion checks are written every year, costing billions of dollars.

When Did Check 21 Take Effect?
Check 21 was signed into law on October 28, 2003, became effective on October 28, 2004.

What Does Check 21 Authorize?
Check 21 authorizes the use of a new negotiable instrument called a substitute check.

What Is A Substitute Check?
The substitute check is a reproduction of the original check that can be transferred electronically. The substitute check is a legal check and can be used in the same way as an original check. By utilizing a substitute check, delays due to the mail and costs associated with transporting checks will be greatly reduced.

What Are The Advantages Of Check 21?

• Checks will clear faster
• Check fraud will decrease
• Check security will increase
• Check processing will cost less

How Will Check 21 Impact Members?

• Members need to be aware that checks they write may now clear faster. It is important to be sure that funds are available before writing a check.
• There are several options available to members to prevent the potential problem of bouncing a check. Please contact a Branch for details.

Will Check 21 Change Check Hold Times?
No, the law does not shorten check hold times.

What If I Have More Questions?
There are brochures available in each of our Branches or you can download a Check 21 Brochure here.

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