Check 21 Archive

On December 21, 2001, the Federal Reserve Board unveiled draft legislation on Check 21. The legislation was signed into law by President Bush on October 28, 2003 and took effect on October 28, 2004.

Check 21's objective is to improve the overall efficiency of the nation's payments system. The legislation permits banks to truncate original checks, process the check information electronically, and print and deliver 'substitute checks' (also called image replacement documents) to banks and to bank customers who want to continue to receive paper checks.

For more general information on what Check 21 does, how it works,and the benefits and expected costs, please read Check 21: What Does It Mean to Bankers and Consumers?

Board Releases Final Amendments to Regulation CC

In a press release, the Board announced final amendments to Regulation CC and its commentary. The amendments:

• set forth the requirements of Check 21 that apply to banks
• provide a model disclosure and model notices relating to substitute checks
• set forth bank indorsement and identification requirements for substitute checks

2003 Federal Reserve Bank of Chicago Annual Report
Victor Stango, Carrie Jankowski and Tom Ciesielski discuss Check 21 and evolving payment standards and public policy issues.

Regulation CC Model Forms July 2004

• Check 21 Presentation by Tara Rice and Ian Dew-Becker
• Check 21: The Details by Ian Dew-Becker