Sentence examples for substitute check from inspiring English sources

Technically, what Check 21 does is create a new negotiable instrument called a substitute check, which permits a bank to take an image of a check that is presented for deposit and process it electronically.

We would also like to see a major bank step up and pledge to re-credit accounts within 10 days of a customer's reporting an error, without the need for a substitute check.

Worse yet, to promptly correct problems that may arise from electronic processing, such as double payment of a single check or payment in the wrong amount, the new rules require a customer to present a copy of the check's electronic image, known as a "substitute check".

The financial institution or processor must provide a warranty for the substitute check.

The substitute check must accurately represent the MICR line of the original check.

The substitute check must bear the legend "This is a legal copy of your check.

Since substitute checks are considered legal "checks," substitute checks are subject to existing check laws and regulations.

Substitute checks are recognized as legal checks as long as the instruments meet specific requirements.

Image statements that include pictures or images of the original paper checks and/or substitute checks, photocopies of the original checks, and images of checks posted online are not recognized as the legal equivalents of substitute checks.

Substitute checks are also subject to the UCC, existing federal and state check laws, and regulations specific to consumer rights that affect the acceptance of these instruments.

Under the Check 21 Act, payment instruments that are eligible for conversion into substitute checks include consumer (personal) checks, commercial (business) checks, money orders, traveler's checks and treasury checks.