12 U.S.C. § 5011 | Consumer awareness

(a)

In general

Each bank shall provide, in accordance with subsection (b), a brief notice about substitute checks that describes—

(1)

how a substitute check is the legal equivalent of an original check for all purposes, including any provision of any Federal or State law, and for all persons, if the substitute check—

(A)

accurately represents all of the information on the front and back of the original check as of the time at which the original check was truncated; and

(B)

bears the legend: “This is a legal copy of your check. You can use it in the same way you would use the original check.”; and

(2)

section 5006 of this title the consumer recredit rights established under when a consumer believes in good faith that a substitute check was not properly charged to the account of the consumer.

(b)

Distribution

(1)

Existing customers

With respect to consumers who are customers of a bank on the effective date of this chapter and who receive original checks or substitute checks, a bank shall provide the notice described in subsection (a) to each such consumer no later than the first regularly scheduled communication with the consumer after the effective date of this chapter.

(2)

New account holders

A bank shall provide the notice described in subsection (a) to each consumer who will receive original checks or substitute checks, other than existing customers referred to in paragraph (1), at the time at which the customer relationship is initiated.

(3)

Mode of delivery

A bank may send the notices required by this subsection by United States mail or by any other means through which the consumer has agreed to receive account information.

(4)

Consumers who request copies of checks

Notice shall be provided to each consumer of the bank that requests a copy of a check and receives a substitute check, at the time of the request.

(c)

Model language

(1)

In general

October 28, 2003Before the end of the 9-month period beginning on , the Board shall publish model forms and clauses that a bank may use to describe each of the elements required by subsection (a).

(2)

Safe harbor

(A)

In general

A bank shall be treated as being in compliance with the requirements of subsection (a) if the bank’s substitute check notice uses a model form or clause published by the Board and such model form or clause accurately describes the bank’s policies and practices.

(B)

Deletion or rearrangement

A bank may delete any information in the model form or clause that is not required by this chapter or rearrange the format.

(3)

Use of model language not required

This section shall not be construed as requiring any bank to use a model form or clause that the Board prepares under this subsection.

Pub. L. 108–100, § 12Oct. 28, 2003117 Stat. 1189(, , .)

Editorial Notes

References in Text

Oct. 28, 2003section 20 of Pub. L. 108–100 section 5001 of this titleThe effective date of this chapter, referred to in subsec. (b)(1), is at the end of the 12-month period beginning on , except as otherwise specifically provided in this chapter, see , set out as an Effective Date note under .

Pub. L. 108–100Oct. 28, 2003117 Stat. 1177 section 5001 of this titleThis chapter, referred to in subsec. (c)(2)(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 under and Tables.

Statutory Notes and Related Subsidiaries

Effective Date

Oct. 28, 2003section 20 of Pub. L. 108–100 section 5001 of this titleSection effective at the end of the 12-month period beginning on , see , set out as a note under .