Check 21
Effective October 28, 2004, the Check 21 or Check Clearing for the 21st Century Act will go into effect. Check 21 will improve today's existing system by allowing checks which are now being transported physically around the country to be transported digitally.
Check 21 allows a Bank to take a digital picture of your original check (showing the front and back with a magnetic ink character line with all of its routing data) which can then be processed electronically.
Substitute Check - The digital picture is called a Substitute Check and
- is a legal equivalent of your original check for all purposes including requirements for state and federal law.
- Will have a legend that states "this is a legal copy of your check – you can use it the same way you can use the original check".
- Provides legal proof that you made payment.
Consumer Protection – If you believe that a substitute check was not properly paid, the law has provided certain specific claim procedures which the Bank must follow. If you receive a substitute check and you believe that it has been paid incorrectly, contact your nearest branch immediately for information on these claim procedures.
How will this affect you?
If you currently receive images of your checks, you may receive some images of substitute checks with your statement.
Important Note: Since it is expected that these changes will drastically reduce the amount of time it takes to move money from your account to pay those who receive your checks, you will need to have sufficient funds in your account to cover the payment at the time you write the check.
If you have any questions regarding Check 21 visit or call our office (845-695-7400) and one of our customer service representatives will be glad to answer any questions you may have.
643 Route 211 East
Middletown, New York 10941
(845) 695-7400 • CBObank.net
25 Elm Street
Warwick, New York 10990
(845) 987-7400 • CBObank.net
|
