The Check Clearing for the 21^st Century Act (Check 21) will officially become effective in October. We know you may have questions regarding Check 21 and what it means to you. We’ve put together of frequently asked questions to help you understand Check 21.

When will Check 21 take effect? Check 21 was signed into law October 28, 2003, and becomes effective October 28, 2004.

What does Check 21 do? Check 21 will create a more efficient check processing system, without changing the way you write your checks. It includes several safeguards for check-writing consumers. Check 21 helps speed check clearing, so check fraud can be discovered faster. Faster fraud detection means faster resolution for customers.

What if I need a copy of my cancelled check for proof of payment? You will continue to receive images of your checks with your monthly statement as you have in the past. If you have an account (such as Free checking) and you receive only your monthly statement and no images, contact us and we can produce an image for you. Digital images of cancelled checks have been accepted as proof of payment by the courts and the IRS for decades. If you are an Internet Banking customer, you may retrieve images of cancelled checks through our online banking service as well.

What happens to my original check? After taking a digital image, the bank of first deposit may destroy your original check. If necessary, a substitute check may be created to send to those banks that are not imaging. Since substitute checks are legal copies of your original check, there is no need to save the original.

What items are subject to Check 21?
All checks, including cashier’s checks, payroll checks, personal checks and business checks are subject to Check 21. Savings bonds are not checks and therefore are not subject to Check 21.

How does Check 21 relate to electronic check conversion (e-check)?
Check 21 involves creating digital images of original checks, but they are still processed under the same laws and regulations as paper checks. On the other hand, electronic check conversion, or e-check, occurs when a check is converted into an electronic funds transfer. The transaction is then routed through the Automated Clearing House (ACH) network, the same system used by Direct Deposit.

On your monthly statement, a substitute check will be listed with your other checks; an e-check will be listed with other electronic funds transfers, such as automated debits for health club memberships or a payment setup with a utility company.