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CHECK
CLEARING FOR THE 21ST CENTURY ACT
(or
“Check 21” for short)
How will Check 21 affect YOU!
There has been much talk
about “Check 21” that you have probably seen and heard about in
the newspaper, on television, and from the bank. But how will Check 21
affect you?
Check 21 – A Brief Description
Effective October 28, 2004, The Check
Clearing for the 21st Century Act goes into effect for every
bank. At that time, banks will have the ability to transmit checks
electronically through the banking system. Banks will not be required to adopt
this electronic process. However, banks that do not transmit electronically
will be required to accept substitute checks, just as they currently accept
original paper checks. A substitute check is a paper reproduction of the
original check. Substitute checks are the legal equivalent of the
original checks from which they are produced.
Check 21 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. Another safeguard: A bank that
creates a substitute check must warrant that it is accurate. The bank also
has to make sure that the substitute check is produced in accordance with
industry standards for quality.
How will this affect the customers of The First National Bank of Mount Dora?
At this time, we have not
made any changes to how we process your transactions. For those customers
that do not receive their paid checks in their statement, there will be
virtually no noticeable change. For those customers that do receive their
paid checks in their statement, you may, on occasion, receive a substitute
check in place of the original check.
As always, if you ever have a
question regarding your account statement, we are happy to offer
assistance.
THANK YOU FOR
BANKING WITH US
WE LIKE BEING
YOUR BANKER
THE FIRST
NATIONAL BANK OF MOUNT DORA
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