If an institution can unilaterally determine to truncate all paper checks and other institutions are not required to accept electronic records (images) of checks, how can this be accomplished?
The Act provides for the creation of a new paper legal instrument, substitute check, that is the legal equivalent of the original check for all purposes and that can be processed as if it were the original check. (Substitute checks defined below.) The substitute check can be created from the electronic record (image) of the check for those banks and customers who have not agreed to accept the electronic record (image).
Related Questions
- If an institution can unilaterally determine to truncate all paper checks and other institutions are not required to accept electronic records (images) of checks, how can this be accomplished?
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