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Code · U.S. Code · Title 12 - BANKS AND BANKING · CHAPTER 50— CHECK TRUNCATION · § 5001

§ 5001. Findings; purposes

484 words·~2 min read·/usc/title-12/section-5001

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Findings The Congress finds as follows:
(1)In the Expedited Funds Availability Act [12 U.S.C. 4001 et seq.], enacted on August 10, 1987, the Congress directed the Board of Governors of the Federal Reserve System to consider establishing regulations requiring Federal reserve banks and depository institutions to provide for check truncation, in order to improve the check processing system.
(2)In that same Act, the Congress—
(A)provided the Board of Governors of the Federal Reserve System with full authority to regulate all aspects of the payment system, including the receipt, payment, collection, and clearing of checks, and related functions of the payment system pertaining to checks; and
(B)directed that the exercise of such authority by the Board superseded any State law, including the Uniform Commercial Code, as in effect in any State.
(3)Check truncation is no less desirable in 2003 for both financial service customers and the financial services industry, to reduce costs, improve efficiency in check collections, and expedite funds availability for customers than it was over 15 years ago when Congress first directed the Board to consider establishing such a process.
(b)Purposes The purposes of this chapter are as follows:
(1)To facilitate check truncation by authorizing substitute checks.
(2)To foster innovation in the check collection system without mandating receipt of checks in electronic form.
(3)To improve the overall efficiency of the Nation’s payments system.
(Pub. L. 108–100, § 2, Oct. 28, 2003, 117 Stat. 1177.)
Connections69 cite this · traces to 2
Cited by 69 sections · top 53
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8 references not yet in our index
  • Pub. L. 108–100, § 2
  • 117 Stat. 1177
  • Pub. L. 100–86
  • 101 Stat. 635
  • Pub. L. 108–100
  • Pub. L. 108–100, § 20
  • 117 Stat. 1194
  • Pub. L. 108–100, § 1(a)
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§ 5001
Findings; purposes
U.S.C.×31
Fed. Reg.×28
Bills×4
Stat. Comp.×3
Stat.×3
Pub. L.Pub. L. 108–100, § 2
Stat.117 Stat. 1177
Pub. L.Pub. L. 100–86
Stat.101 Stat. 635
Pub. L.Pub. L. 108–100
Cites 10 · showing 7Cited by 69 across 5 sources
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