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What is Check 21?
On October 28, 2004, The Check Clearing for the 21st Century Act (Check 21), became Federal law. The new law is intended to improve the efficiency of our country’s payment systems. Under the law, your original check may be removed from the check process and replaced by an electronic image or a “substitute check”.
What may happen to my original check?
The Bank/Credit Union that converts your original check to a “substitute check” may destroy your original check. The Law does not impose any minimum time period on Banks/Credit Unions to keep original checks.
What if I need a copy of my check?
You will be able to receive a special kind of copy of your original check called a “substitute check”. The new Check 21 Act says: “A substitute check shall be the legal equivalent of the original check for all purposes”.
Will the substitute check look just like my original check?
If you get your checks back with your statement, you may receive a “substitute check,” which is a paper copy of your original check. It may not be the same size and it may not look exactly like the check you originally wrote, but you’ll be able to use it to prove that your check was written and your payment was made. “Substitute checks” bear the following language: “This is a legal copy of your check. You can use it the same way you would use the original check.”