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Financial Services
Check 21 Law
Notice to VSU Community:
A new federal check law, Check Clearing for the 21st Century Act or Check 21, takes effect beginning October 28, 2004. The purpose of Check 21 is to improve banking system efficiencies by eliminating the need to transport paper checks for presentment between banks and to facilitate a broader use of electronic check processing. Check 21 will allow banks to use substitute checks, which are digital images of original checks, to clear checks within several hours instead of several days. This will result in acceleration in the clearing of checks and a reduction in "float" time. What does this mean to you? If you write a check today, and the funds are not available until the next day, your check may bounce. Additionally, you may begin receiving substitute checks with your statements each month if you are currently receiving your original checks.
If you have any questions or concerns, please contact your banking institution for further information.