After teaching Check 21 seminars all last week, I know there are tons of questions and issues you're grappling with. This is the place to discuss them!

Thanks Mary Beth.

Thanks Mary Beth. Four of us from our bank went to our first seminar last week in Indianapolis. It was informative and looks as though we're on the right track. We should be a totally imaged bank before October.

What's Check 21?

Are you serious?? It's a major new federal law which takes effect 10/28/04 that creates a new negotiable instrument, the "substitute check" which is a paper reproduction of an original. It will permit any bank in the chain to image the original, keep the original, and merely transmit the paper reproduction or, if the next party in the chain agrees, transmit an image instead of paper.

Articles that will help give you some insight are on the BOL Check 21 page. Read from the bottom up to go from big picture to smaller details.

Go easy on people...
Our Internal Auditor didn't know what it was until last week, either.

We are an imaging bank and as soon as we can we will start sending images to the Fed. Will we have to purchase a device that creates Substitute Checks or IRDs?

There is an article in today's (3/3/04) American Banker addressing the subject of cost and payback. There appears to be quite an investment requirement with uncertain cost savings.

I'm so glad this section is here!!

The FRB will most likely be offering several new Image Cash Letter Products come October 28. Among them will probably be a totally mixed (RT) image cash letter which might seem like an easy way for a bank to clear its items. Not until pricing is available, can a prudent business decision be made. The FRB will only have so many paying banks with whom it can present images and for the remainder, it must crete a substitute check. The cost of these items is not known. FRB plans to provide general product description and price ranges in the late 2Q with final product info and pricing in late 3Q. It also is not certain whether the FRB will take on the warrants and indemnifications of the Reconverting Bank in all situations where it creates a substitute check. They are still examing these issues.

When is the actual regulation due out?

Can you help clarify this for me? If there is a Substitute Checks that was made by a non-bank, are we required to accept it? I have seen different idea's on this topic.

Thank you

Can we substitute a substitute check? or I would say
Can a bank create a substitute check from an image of another substitute check?

As a clearing bank we may decide to image our customers cash letter rather than send the original checks. My question is, What do we do with all of those checks? Does our bank have to retain them for 6mo? Please let me know.

Thank You

Our bank outsources on-us imaging. We are forced with 2:00 pm cutoffs to meet cashletter deadlines. We still proof and capture on a UT600 aproximately 18,000 items per day. Do you think it is too soon for us to be looking at bringing imaging in-house with the possiblity of branch capture? Does anyone forsee technology changing that may change the way images are exchanged? 100% of our customers receive image statements. No paper checks returned in statements.