About Marine
What's New?
Education/Security Info

Home Loan Center

Direct Line
ATM Services
Reorder Checks
Disclosure Statements
Contact Us

Learn About Verified by Visa

Check 21 Act
New Legislation effective October 28, 2004

The Check 21 Act (Check Clearing for the 21st Century Act) is new legislation that went into effect on October 28, 2004.  This Act was designed to improve efficiency of the check clearing process, making it faster and more secure. The following questions and answers about Check 21 may help provide clarification on how the new law may affect you.

Q:    What is Check 21?

A:  Check 21 speeds the process of clearing checks by allowing financial institutions to take a copy (electronic image) of your check and process it electronically rather than transport the original check by truck, plane or train.  This allows the check to travel from the payee’s bank to the credit union much faster and eliminates the risk of transporting documents.

While Check 21 may further reduce check float time; MCU has always advised our members that checks should not be written unless you have the funds to cover them in your account. However, should you inadvertently overdraw your account, many of our checking accounts are covered with Overdraft Privilege, which normally allows us to cover your overdrafts as outlined in the Discretionary Overdraft Policy.  To find out if you have the protection of Overdraft Privilege, call today for more information.

Q: Do we have to accept Substitute Checks?

A: Yes! Everyone, including banks, credit unions, paying customers, depositing customers, consumers, corporations and the Federal Government must accept a Substitute Check that meets the entire legal requirements.

Q: What happens to my original check?

A:  When an electronic image is created the original check is taken out of the check clearing process and at some point may be destroyed – this process is called truncation.   The original check may no longer be available, but in its place is a substitute check – a legal equivalent that can be used just like the original check. You will be able to obtain a copy of the substitute check as proof of payment if needed.

Q: What is a Substitute Check?

A:  The law permits financial institutions to replace an original check with a “Substitute Check”, a paper reproduction of the original. The Substitute Check will be approximately the same size as a business check and will contain a slightly reduced image of the front and back of the original check.  The image must accurately represent all the information on both sides of the original check at the time it was truncated.  On the front of the Substitute Check and to the left of the image is a legend that states – “This is a legal copy of your check.  You can use it the same way you would the original check”.

For years Marine Credit Union has been truncating checks, so changes as a result of Check 21 will be very minimal. We will work to make this a smooth transition and will continue to provide information as updates occur.  If you have any additional questions regarding Check 21 please contact your local Marine Branch or Click Here to have one of our friendly staff members contact you. Please be sure to include your name and daytime phone number in your email.

[About Marine | Lending Services | Online Services | Products | Direct Line | ATM Services]
[Rates | Reorder Checks | Privacy Policy | Employment | Contact Us | Home | Search]

Equal Housing Lender Equal

Copyright © 2010/2011 Marine Credit Union


National Credit Union Administration