Check Clearing For The 21st Century Act - Check 21
- Check Clearing For The 21st Century Act - Check 21
- A federal law that took effect on October 28, 2004, and gives banks and other organizations the ability to create electronic image copies of consumers' checks. The images are then sent to the relevant financial institutions to be processed, where money from a consumer's account is transferred to the receiving party's account.
This law aims to make use of technology to reduce or eliminate the costs involved with paper check processing. For example, the cost of physically transporting a paper check from one part of the country to another is far higher than the delivery of an image of a check across a secure network.
After a predetermined holding period has elapsed, banks may destroy the original paper check. However, not all banks do this and in some cases, consumers may be able to ask for their cashed checks back for record-keeping purposes.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Check 21 Act — The Check Clearing for the 21st Century Act (or Check 21 Act) is a United States federal law, Pub.L. 108 100, that was enacted on October 28, 2003 by the 108th Congress. The Check 21 Act took effect one year later on October 28, 2004. The law… … Wikipedia
Check 21 Act — The Check Clearing for the 21st Century Act ( Pub. L. No. 108 100 signed by President Bush on October 28, 2003). The law facilitates check truncation by creating a new negotiable instrument called a substitute check, which permits banks to… … Financial and business terms
Expedited Funds Availability Act — The Expedited Funds Availability Act (EFA or EFAA) was enacted in 1987 by the United States Congress for the purpose of standardizing hold periods on deposits made to commercial banks and to regulate institutions use of deposit holds. It is also… … Wikipedia
Substitute check — A substitute check (also called an Image Replacement Document or IRD ), according to the US Federal Reserve, is a special paper copy of the front and back of an original check . Not all copies of the original check are substitute checks, and… … Wikipedia
Electronic Check Presentment - ECP — A process that allows financial institutions to exchange digital images of checks instead of paper to increase the speed of of the check cashing process. The signing of the Check Clearing for the 21st Century Act by President Bush permitted the… … Investment dictionary
Substitute Check — A paper reproduction of a check that is copied electronically. Strict guidelines exists regarding the requirements that must be met for the creation of a substitute check, because the substitute can be legally used in any manner in which the… … Investment dictionary
The Queen's Own Cameron Highlanders of Canada — Infobox Military Unit unit name= The Queen s Own Cameron Highlanders of Canada caption=Cap badge of the Camerons of C dates= 1 February 1910 Present country= Canada allegiance= branch= Militia type= Line Infantry role= Light Role size= One… … Wikipedia
Float Time — The amount of time between when an individual writes and submits a check as a payment and when the individual s bank receives the instruction to move funds from the account. Before the implementation of the Check Clearing for the 21st Century Act … Investment dictionary
History of the New York Yankees — The New York Yankees have a long history filled with many high points, milestones, and championships. With 26 world championships, they are the winningest team in not only baseball, but in all of professional sports, and have accomplished this… … Wikipedia
Cheque — A Canadian cheque … Wikipedia
