Short for Check Clearing for the 21st Century Act which allows for the voluntary usage of digital images as negotiable instruments.
A new federal law that allows banks to replace a check with an electronic image or substitute check; a shortened term used to refer to the "Check Clearing for the 21st Century Act." For more information, click here.
The Check Truncation Act of the 21st Century, a Federal Reserve Bank law allowing financial institutions the option to clear checks electronically rather than having to forward the original paper check. Also called: CTA and Check 21
The Check Clearing for the 21st Century Act – legislation authorizing financial institutions to truncate checks and exchange images instead of paper checks. This law also allows for the creation of substitute checks or IRDs (Image replacement documents).
The Check Truncation Act for the 21st Century: This legislation takes effect October 28th 2004, and essentially gives an Image Replacement Document (IRD) the same legal status as a check. This allows truncation of checks at the point of presentment and clearing of the payment by the exchange of images.
The Check 21 Act (effective Oct. 28, 2004) facilitates truncation through expanded use of electronic processing technologies to improve the efficiency and reduce the cost of the nation’s check collection system. The law provides for a new negotiable paper instrument called a substitute check, which can be used in place of the original paper check without an agreement. This allows paper items to be truncated early in the collection or return process, with image cash letters replacing paper cash letters.
Refers to the Check Truncation Act of the 21st Century, a Federal Reserve Bank law that allows merchants to submit customers' check, or bank account, information for payment electronically instead of processing paper checks.
