View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Federal Reserve Bank of Dallas
2200 N. PEARL ST.
DALLAS, TX 75201-2272

October 19, 2004

Notice 04-71

TO: The Chief Executive Officer of each
financial institution and others concerned
in the Eleventh Federal Reserve District

Check Clearing for the 21st Century Compliance InfoBase Released by
Federal Financial Institution Regulators
The Federal Financial Institutions Examination Council (FFIEC) has announced the
availability of an InfoBase for depository institutions that provides information on consumer
compliance aspects of the Check Clearing for the 21st Century Act (Check 21).
The Check 21 InfoBase features a training presentation, examination procedures,
frequently asked questions and links to other resources that may be helpful in understanding
Check 21. The InfoBase is accessible at
Check 21 was signed into law on October 28, 2003, and will take effect on October
28, 2004. It facilitates check truncation and electronic check exchange by authorizing a new
negotiable instrument called a “substitute check.” Check 21 provides that a properly prepared
substitute check is the legal equivalent of the original check. A depository institution can provide
a legally equivalent substitute check when and where an original check is needed instead of
providing the original check.
Although Check 21 does not require any depository institution to create substitute
checks or accept checks electronically, certain provisions of Check 21 will affect all depository
institutions, even those that do not create substitute checks. These provisions involve consumer

For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012;
Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.


awareness disclosures and expedited recredit procedures to protect consumers who receive
substitute checks. There are also new warranties and indemnities that protect all substitute check
The “FFIEC InfoBase” concept was developed by the Task Force on Examiner
Education to provide field examiners in financial institution regulatory agencies with a quick
source of introductory training and basic information. The long-term goal of InfoBase is to
provide just-in-time training for new regulations and for other topics of specific concern to
examiners in FFIEC’s five member agencies.
For more information regarding the InfoBase, please contact Susan Stawick, 202-4523128, Board of Governors. Paper copies of this notice or previous Federal Reserve Bank notices
can be printed from our web site at