New Check Clearing Law - Check 21

The Check Clearing for the 21st Century Act (Check 21) was implemented during the end of 2004. This new law allows a bank to process your checks faster. A bank now has the option to electronically transfer the image of your check instead of physically mailing it. Once an electronic image is received by your bank, the amount will be drafted from your account and paid.

Please note that when an electronic image of your check is sent to your bank, your original check will be replaced with a 'substitute check'. A substitute check is a special paper copy of both sides of your originally written check. The front of the substitute check should contain a statement that says: "This is a legal copy of your check. You can use it the same way you would use the original check". The substitute check can be used as proof of payment, the exact same way that your original check is used as proof of payment.

Please note that when you write a check, your money will be drafted out of your checking account much faster. If you have ever paid by check and then deposited the money into your checking account, you will probably receive a bounced check fee. Please make sure that you have enough money available in your checking account before paying a bill by check.