[Code of Federal Regulations]

[Title 12, Volume 3]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR229.51]



[Page 567]

 

                       TITLE 12--BANKS AND BANKING

 

                   CHAPTER II--FEDERAL RESERVE SYSTEM

 

PART 229_AVAILABILITY OF FUNDS AND COLLECTION OF CHECKS (REGULATION CC)

--Table of Contents

 

                       Subpart D_Substitute Checks

 

Sec. 229.51  General provisions governing substitute checks.



    Authority: 12 U.S.C. 5001-5018.



    Source: 69 FR 47311, Aug. 4, 2004, unless otherwise noted.





    (a) Legal equivalence. A substitute check for which a bank has 

provided the warranties described in Sec. 229.52 is the legal 

equivalent of an original check for all persons and all purposes, 

including any provision of federal or state law, 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.''

    (b) Reconverting bank duties. A bank shall ensure that a substitute 

check for which it is the reconverting bank--

    (1) Bears all indorsements applied by parties that previously 

handled the check in any form (including the original check, a 

substitute check, or another paper or electronic representation of such 

original check or substitute check) for forward collection or return;

    (2) Identifies the reconverting bank in a manner that preserves any 

previous reconverting bank identifications, in accordance with ANS 

X9.100-140 and appendix D of this part; and

    (3) Identifies the bank that truncated the original check, in 

accordance with ANS X9.100-140 and appendix D of this part.

    (c) Applicable law. A substitute check that is the legal equivalent 

of an original check under paragraph (a) of this section shall be 

subject to any provision, including any provision relating to the 

protection of customers, of this part, the U.C.C., and any other 

applicable federal or state law as if such substitute check were the 

original check, to the extent such provision of law is not inconsistent 

with the Check 21 Act or this subpart.