What is the Check Clearing for the 21st Century Act?

The Check Clearing for the 21st Century Act (Check 21) is an act that was enacted by Congress in 2003. It is a federal law that changed how checks are processed and cleared in the United States. Check 21 made it so banks can now create a digital version of a paper check and send it electronically instead of sending the actual paper check. Check 21 is aimed at making the check-clearing process faster and more efficient. Before Check 21, banks used to have to manually process and clear checks, which was a slower and more costly process. With Check 21, the clearing process time is greatly reduced. In Texas, Check 21 provides banks with certain protections when they create the electronic version of a paper check. In particular, it prevents banks from being held liable for any bank errors that occur in the electronic check-clearing process. Check 21 is an important law in Texas and throughout the United States. It is intended to make the process of clearing checks faster and more efficient. With its protections for banks, it also gives them more assurance when processing electronic checks.

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What is the Check Clearing for the 21st Century Act?

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