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Check 21


Check 21
This legislation has been in effect since October 28, 2004. Also known as Check Clearing for the 21st Century Act, it will enhance the security of our country's financial system and streamline the way checks are processed.

What is Check 21?
Check 21 is a law that allows financial institutions to replace paper checks with substitute checks created from an electronic imaging process. Substitute checks will be considered the legal equivalent of an original paper check.

How Will This Change My Checking Account?
At State Bank of Lincoln, you already receive images of checks back in your statement; therefore Check 21 will not be very noticeable in that regard. What you may notice is an occasional image of a substitute check. The substitute check will be slightly smaller than the original check, but it will have all the information on the front and back of your check. The front of a substitute check will also state: This is a legal copy of your check. You can use it the same way you would use the original check. Substitute checks are sent to us electronically from other financial institutions.

  • It is important to understand that your checks may clear sooner with this new legislation. A substitute check is capable of clearing your account electronically in hours versus days. As always, please be sure you have funds available whenever you write a check.

How Can I Learn More?
Click here http://www.fdic.gov/ to visit the FDIC website and search for Check 21 related articles, or contact us at 217-735-5551 to request a free brochure.

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