What are the requirments for addressing claims of errors on regular checks which are not covered by the Check 21 expedited recrediting procedures? I have read statements saying that there are no requirements so the procedures can be determined by bank management. But others have said they're covered by UCC requirements. Can someone set me straight on this? Thanks for your help.

The UCC remains firmly in place. Check 21 rules create an umbrella of additional rules that will affect substitute checks (SCs) only, and only in specific situations.

For example, if an SC is presented for payment against insufficient funds, the UCC (and Regulation CC) will continue to govern how quickly the drawee must return the item or become accountable for it.

But if a consumer received an SC and has a specific SC warranty claim, Check 21 rules in Subpart D of Regulation CC will govern how that warranty claim operates.

Hi John. Thanks for the response.

We're trying to assess the potential impact on check losses that might result from the Check 21 expedited recrediting process, so we're comparing the Check 21 recredit requirements against our existing procedures for regular checks. But in the process I thought it would be wise to make sure our current procedures meet whatever requirements apply to them. Could you tell me what part of the UCC I should be looking at? Also, since all of the states in which we have offices have adopted the UCC can I assume they'll all be the same, or do we need to look at each state individually?

UCC Articles 3 and 4 cover negotiable instruments, and bank deposits and collections, respectively. Article 1 may be referenced for definitions of some Article 3/4 terms.

One cannot assume uniformity in the Uniform Commercial Code. Although proposed language is issued by the UCC drafters (Committee on Uniform State Laws), each state is free to tweak the language. Some states haven't yet adopted the changes recommended in Articles 3/4 back in 1990.

Thanks - I'll start digging.