(a) Legal equivalence. A substitute check for which a bank has provided
the warranties described in section 229.52 is the legal equivalent
of an original check for all persons and all purposes, including any
provision of federal or state law, if the substitute check—
(1) accurately represents all of the information
on the front and back of the original check as of the time the original
check was truncated; and
(2) bears the legend, “This is a legal copy of your check. You can
use it the same way you would use the original check.”
(b) Reconverting-bank duties. A bank shall ensure that a substitute check for which it is the
reconverting bank—
(1) bears all indorsements applied by parties
that previously handled the check in any form (including the original
check, a substitute check, or another paper or electronic representation
of such original check or substitute check) for forward collection
or return;
(2) identifies
the reconverting bank in a manner that preserves any previous reconverting-bank
identifications, in accordance with ANS X9.100-140; and
(3) identifies the bank that
truncated the original check, in accordance with ANS X9.100-140.
(c) Applicable
law. A substitute check that is the legal equivalent of an original
check under paragraph (a) of this section shall be subject to any
provision, including any provision relating to the protection of customers,
of this part, the UCC, and any other applicable federal or state law
as if such substitute check were the original check, to the extent
such provision of law is not inconsistent with the Check 21 Act or
this subpart.
