1st Mississippi Federal Credit Union

Check 21

Check 21 allows the credit union to electronically capture, transmit, and retrieve check images of all checks deposited at the credit union. This will reduce check fraud, generate faster clearing times, and allow us the ability to retrieve copies of the checks you deposit.

A federal law called "Check Clearing for the 21st Century Act" (Check 21) is designed to increase the efficiency and security of the national check payment system through the use of electronic image technology. We think it is important for you to know about this process.

One of the biggest impacts of this technology is that checks may clear faster, which means that instead of checks taking 3-4 days to clear - they may clear 1-2 days quicker! Faster clearing of checks is possible because financial institutions can now request payment of a check by sending an electronic image of the check rather than the actual paper check.

When you make a payment by check, it may be handled by several financial institutions before it actually posts to your account. Effective immediately, any financial institution involved in this process may choose to replace your original check with a "substitute check," a copy made from the electronic image of the original check. Check 21 specifies that a "substitute check" will be the legal equivalent of the original check for all purposes, and must be accepted in the same way as the original. You may see a "substitute check" when you view your account information online or request a copy of your original check for proof of payment.