Check 21 and Remote Deposit Capture

Check 21, Remote Deposit Capture and Check Fraud
This seven page article by Frank Abagnale and Greg Litster was reviewed for technical accuracy by the Federal Reserve Board on November 14, 2006. Remote Deposit Capture, made possible through the Check 21 legislation, is THE hot topic in Treasury Management today. But, it is not without significant financial risk. This paper explains the risk factors associated with converting paper checks into electronic images under Check 21. Emphasis is on the warranties and indemnity, and includes how certain check security features can help protect a company in a Check 21 world. (7 pages - 40 KB)

Check 21 Act
"Check Clearing for the 21st Century Act" or the "Check 21 Act." An Act to facilitate check truncation by authorizing substitute checks, to foster innovation in the check collection system without mandating receipt of checks in electronic form, and to improve the overall efficiency of the Nation's payments system, and for other purposes. (18 pages - 80 KB)

Federal Reserve Board - Final Rule, July 26, 2004
Final amendments to Regulation CC that add a new subpart D, with commentary, to implement the recently-enacted Check Clearing for the 21st Century Act, released by the Federal Reserve Board on July 26, 2004. These amendments (1) set forth the requirements of the Check 21 Act that apply to banks, (2) provide a model disclosure and model notices relating to substitute checks, and (3) set forth indorsement and identification requirements for substitute checks. The amendments also clarify some existing provisions of the rule and commentary. (114 pages - 575 KB)

Federal Reserve Board - Proposed Rule, Dec. 22, 2003
Proposed amendments to Regulation CC that would add a new subpart D, with commentary, to implement the recently-enacted Check Clearing for the 21st Century Act. These proposed amendments (1) would set forth the requirements of the Act that apply to banks, (2) provide a model disclosure and model notices relating to substitute checks, and (3) set forth indorsement requirements and truncating bank and reconverting bank identification requirements for substitute checks. The proposed amendments also would clarify some existing provisions of the rule and commentary. (89 pages - 256 KB)

Frank Abagnale and Unisys White Paper - Is Your Check 21 Implementation a Fraud Hazard?
A Unisys white paper discussing the wide possibility for fraud under Check 21, detailing issues raised by Frank W. Abagnale, Ori Eisen, and Elazar Katz. (8 pages - 468 KB)

Frank Abagnale and Standard Register - Check 21 and Image Security
A review of the implications associated with identifying image-survivable security features in response to recent Check 21 legislation. (8 pages - 372 KB)

Sample Substitute Check (aka Image Replacement Document - IRD)