How does Check 21 relate to the NACHA rules and Regulation E?
There is no direct relationship of Check 21 Act to NACHA rules and Regulation E. Check 21 Act is Federal law, but other than the special provisions for substitute checks under the Act a substitute check is governed under all applicable check law from beginning to end, and all rights and obligations of check law stays in place for substitute checks. This check law can include the UCC and the Federal Reserve’s Regulation CC. Transfers initiated by check are excluded from Regulation E coverage.
