117 STAT. 1180
PUBLIC LAW 108–100—OCT. 28, 2003 (B) if a substitute check is created by a person other than a bank, the first bank that transfers or presents such substitute check. (16) SUBSTITUTE CHECK.—The term ‘‘substitute check’’ means a paper reproduction of the original check that— (A) contains an image of the front and back of the original check; (B) bears a MICR line containing all the information appearing on the MICR line of the original check, except as provided under generally applicable industry standards for substitute checks to facilitate the processing of substitute checks; (C) conforms, in paper stock, dimension, and otherwise, with generally applicable industry standards for substitute checks; and (D) is suitable for automated processing in the same manner as the original check. (17) STATE.—The term ‘‘State’’ has the same meaning as in section 3(a) of the Federal Deposit Insurance Act. (18) TRUNCATE.—The term ‘‘truncate’’ means to remove an original paper check from the check collection or return process and send to a recipient, in lieu of such original paper check, a substitute check or, by agreement, information relating to the original check (including data taken from the MICR line of the original check or an electronic image of the original check), whether with or without subsequent delivery of the original paper check. (19) UNIFORM COMMERCIAL CODE.—The term ‘‘Uniform Commercial Code’’ means the Uniform Commercial Code in effect in a State. (20) OTHER TERMS.—Unless the context requires otherwise, the terms not defined in this section shall have the same meanings as in the Uniform Commercial Code.
12 USC 5003.
SEC. 4. GENERAL PROVISIONS GOVERNING SUBSTITUTE CHECKS.
(a) NO AGREEMENT REQUIRED.—A person may deposit, present, or send for collection or return a substitute check without an agreement with the recipient, so long as a bank has made the warranties in section 5 with respect to such substitute check. (b) LEGAL EQUIVALENCE.—A substitute check shall be the legal equivalent of the original check for all purposes, including any provision of any Federal or State law, and for all persons if the substitute check— (1) accurately represents all of the information on the front and back of the original check as of the time the original check was truncated; and (2) bears the legend: ‘‘This is a legal copy of your check. You can use it the same way you would use the original check.’’. (c) ENDORSEMENTS.—A bank shall ensure that the substitute check for which the bank is the reconverting bank bears all endorsements applied by parties that previously handled the check (whether in electronic form or in the form of the original paper check or a substitute check) for forward collection or return. (d) IDENTIFICATION OF RECONVERTING BANK.—A bank shall identify itself as a reconverting bank on any substitute check for which the bank is a reconverting bank so as to preserve any
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