The Check Clearing For The 21st Century Act, commonly known as "Check 21" is a federal law designed to enhance the speed and efficiency of check processing. Check 21 eliminates the requirement for banks to physically transfer original paper checks from one bank to another. This does not mean banks will stop processing paper checks, but offers an electronic alternative.

When did Check 21 go into effect?
October 28, 2004

How are checks being processed?
In the absence of physical transfers of checks, banks may elect to digitally transmit images of checks through the system. These digital images may be converted to paper in what is referred to as a "substitute check." A substitute check is a reproduction printed on paper of the digital image. Substitute checks are the legal equivalent of the original check.

What effect does the customers see?

• Checks will clear faster.
• Substitute checks may be returned to customers rather than originals. If you already receive images of checks, you may also receive images of substitute checks.

What should customers know?

• Checks will clear your bank account much faster, so be sure funds are in the bank when the check is written.
• As always, review your bank statement when it arrives.

What are my rights regarding substitute checks?
In certain cases, federal law provides a special procedure that allows you to request a refund for any loss you suffer resulting from an inaccurate or erroneous substitute check. You may recover the erroneous amount that was withdrawn from your account and any fees charged because of the error.

The amount of your refund under this procedure is limited to your loss, or the amount of the substitute check, whichever is less. You are entitled to interest on the amount of your refund if your account is an interest-bearing account. If your loss exceeds the amount of the substitute check, you may be able to recover under other laws.

If you use this procedure, you may receive up to $2,500 of your refund (plus interest if your account earns interest) within 10 business days after we receive your claim, and the remainder of your refund not later than 45 days after we receive your claim.

We may reverse the refund (including any interest on the refund) if we later are able to demonstrate that the substitute check was correctly posted to your account.

How to make a claim for a refund?
If you believe that an unauthorized substitute check was posted to your account please click here to contact us.

You must contact us within 40 calendar days of the date that we mail your statement. We will extend this time if you are unable to make a timely claim because of extraordinary circumstances.

Your claim must include:

• A description of why the substitute check is incorrect.
• Your loss.
• A copy of the substitute check (and/or) the following information to help us identify the substitute check:
• Check Number
• Check Payee
• Check Date
• Check Amount