Check 21

The "Check Clearing for the 21st Century Act," commonly known as "Check 21," was signed into law in the fall of 2003 and becomes effective on October 28, 2004.

This new federal law affects every financial institution in the nation and its customers. Here are some examples of the changes that you’ll see after the new law takes effect on October 28, 2004:

If you currently receive your cancelled checks with your account statement, a "substitute check" may now replace your original check.
If you deposit a check into your account, it may be returned to you as a "substitute check."
Some checks that you write may now clear faster than in the past.
If you request a copy of a check, you may receive a "substitute check" that is now the legal equivalent of an original check.


Check 21 provides that a "substitute check" will be treated the same as the original under applicable law. Therefore, you can use it for any purpose that you would use an original check.

To help you better understand "Check 21," its impacts and your rights, we have:


Just thought I'd keep you up to date

For more information contact your bank or go to their website.

By Marg on Friday, October 8, 2004 - 08:21 pm:

Hey John, do you think banks will change their 'foreign deposit waiting period?"

A lot of banks hold a foreign deposit 3-5 days before you can use it, just in case you didn't know.

I bet they won't even though it states checks will clear faster, just another bank loophole to make themselves more $$$;)

By Vicki on Friday, October 8, 2004 - 08:24 pm:

I just read about this in the paper today!! They said checks will clear in a matter of hours now instead of days. They were also talking about if you are a person that "floats" checks, your going to be in trouble. LOL

By Boxzgrl on Friday, October 8, 2004 - 08:31 pm:

Wow, a great money making scheme for banks, as if they dont make enough already!! DH and I once deposited a big check at the same time a medium to small size check went through and they wanted to charge us $24.00 for non sufficient funds just due to the fact that they processed the check before the deposit. That didnt go over too well with DH. Needless to say, we got our $ back!

By Mommyathome on Friday, October 8, 2004 - 08:44 pm:

Yes, I saw this a few weeks ago. Bummer deal. Also, the banks aren't clearing checks we deposit any faster. There will still be a hold on those funds.
So, even if we did deposit a check, it might not be readily available to write a check on for a day or so.