Check 21 FAQs

What is Check 21?
When will the Check 21 legislation go into effect?
What is a substitute check?
Can I opt out of Check 21?
Are there other benefits of Check 21?
What if there is an error involving a substitute check?
Does Check 21 apply to all types of checks?
What is the purpose of the Check 21 Act?

Q: What is Check 21?
A: Check 21 (Check Clearing for the 21st Century Act) is a new federal law that took effect on October 28, 2004. It impacts all U.S. financial institutions, not just First South Bank. The goal of Check 21 is to reduce paper, combat fraud and streamline how checks are processed through the banking system. It gives financial institutions the option to move checks electronically by allowing them to replace an original check with a substitute check when necessary.

Q: When will the Check 21 legislation go into effect?
A: The new federal law took effective on October 28, 2004. At this time you may begin to receive substitute checks in your monthly statement. The substitute checks will include all the information on the front and back of the original checks, including endorsements.

Q: What is a substitute check?
A: A substitute check is a paper reproduction of an original check created during the check collection and return process from an electronic image of the original. It is a legal replacement for the original check. A substitute check contains the same information as an original check. It may be slightly larger than the original check and will show a slightly smaller image of the front and back of the check.

You may notice that some substitute checks look different than others. The appearance of a substitute check depends on which bank is processing the check and the type of equipment they are using. However, a substitute check will always include wording that identifies it as a legal copy of the original check — “ This is a LEGAL COPY of your check. You can use it the same way you would use the original check.”

Q: Can I opt out of Check 21?
A: No, Check 21 is a federal law. All banks and their customers must comply.

Q: Are there other benefits of Check 21?
A: Yes, with quicker processing, you will have more up-to-date account balance information sooner.

Q: What if there is an error involving a substitute check?
A: If you beleive you suffered a loss relating to a substitute check that you received and that was posted to your account, please contact us at 1-800-946-4178,stop by your local branch, or write:

First South Bank
Deposit Administrations
PO Box 2047
Washington, NC 27889

Q: Does Check 21 apply to all types of checks?
A: Yes, all checks – personal checks, business checks, cashier’s checks, money orders and government checks – are subject to Check 21 and could be converted into substitute checks. The only exception is foreign checks.

Q: What is the purpose of the Check 21 Act?
A: