Any financial institution in the check clearing process can scan and destroy the original check and create a substitute check.

Question

Quizplus · Accepted Answer

This is true. The Check Clearing for the 21st Century Act (also known as Check 21) allows banks and other financial institutions to create a substitute check (also called an Image Replacement Document or IRD) from a scanned image of the original check. The substitute check is legally acceptable and has the same legal rights and obligations as the original check. Once a substitute check is created, the original check can be destroyed to save on storage costs and streamline the check processing system.

Any Financial Institution in the Check Clearing Process Can Scan