Bank Checks Converted to Images

With Check 21, 'Float' Will Disappear

"The law is always playing catch-up with technology and President Bush's signing the Check Truncation Act in late October is the latest example. . .Instead of requiring physical possession of a paper check by the issuing bank before funds are transferred, the Federal Reserve System will allow quicker processing by allowing the receiving bank to treat an electronic image the same as the check itself. Both sides of the check are photographed. . . . The electronic image would be kept for seven years and, as the law already allows, can serve as evidence, should it be needed, in court. "Images are accepted in court," Davies notes."