United States

Federal

Check Clearing for the 21st Century Act (Check 21)
The United States Check Clearing for the 21st Century Act (Check 21), effective October 2004, enables banks to improve check processing by allowing them to handle more checks electronically, making check processing faster and more efficient. The Act allows banks to issue substitute checks in place of original checks. For example, customers who receive cancelled checks with their monthly account statement may begin to receive substitute checks. Substitute checks are considered proof of payment.