Findings
The Congress finds as follows:
12 U.S.C. 4001 In the Expedited Funds Availability Act [ et seq.], enacted on , the Congress directed the Board of Governors of the Federal Reserve System to consider establishing regulations requiring Federal reserve banks and depository institutions to provide for check truncation, in order to improve the check processing system.
In that same Act, the Congress—
provided the Board of Governors of the Federal Reserve System with full authority to regulate all aspects of the payment system, including the receipt, payment, collection, and clearing of checks, and related functions of the payment system pertaining to checks; and
directed that the exercise of such authority by the Board superseded any State law, including the Uniform Commercial Code, as in effect in any State.
Check truncation is no less desirable in 2003 for both financial service customers and the financial services industry, to reduce costs, improve efficiency in check collections, and expedite funds availability for customers than it was over 15 years ago when Congress first directed the Board to consider establishing such a process.
Purposes
The purposes of this chapter are as follows:
To facilitate check truncation by authorizing substitute checks.
To foster innovation in the check collection system without mandating receipt of checks in electronic form.
To improve the overall efficiency of the Nation’s payments system.
Pub. L. 108–100, § 2117 Stat. 1177(, , .)
Editorial Notes
References in Text
Pub. L. 100–86101 Stat. 635section 4001 of this titleThe Expedited Funds Availability Act, referred to in subsec. (a)(1), (2), is title VI of , , , which is classified principally to chapter 41 (§ 4001 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under and Tables.
Pub. L. 108–100117 Stat. 1177This chapter, referred to in subsec. (b), was in the original “this Act”, meaning , , , which is classified generally to this chapter. For complete classification of this Act to the Code, see Short Title note set out below and Tables.
Statutory Notes and Related Subsidiaries
Effective Date
Pub. L. 108–100, § 20117 Stat. 1194
section 412 of this title“This Act [enacting this chapter, amending , and enacting provisions set out as notes under this section] shall take effect at the end of the 12-month period beginning on the date of the enactment of this Act [], except as otherwise specifically provided in this Act.”
, , , provided that:
Short Title
Pub. L. 108–100, § 1(a)117 Stat. 1177
section 412 of this title“This Act [enacting this chapter, amending , and enacting provisions set out as notes under this section] may be cited as the ‘Check Clearing for the 21st Century Act’ or the ‘Check 21 Act’.”
, , , provided that: