On October 28, 2004 a new law that modernizes check processing will go into effect. This law is the product of the Check Clearing for the 21st Century Act, more commonly known as “Check 21.” What will Check 21 mean to you?    The implementation of Check 21 will have an impact on your account in two ways. First, you will need to make sure that when you write a check the funds are in your account because checks will be processed more quickly. Second, you will start to see “substitute” checks. What is going to cause these changes?    Check 21 gives financial institutions the ability to “electronify” your check thus eliminating the need to physically move a check from one bank to another. Congress realized, however, that not all banks will be able to handle electronic checks, so the substitute check was created.    Once a check has become an electronic item it can then be turned into a substitute check, which will be the legal equivalent of the original check.    The substitute check is a paper reproduction of the original check and contains an image of the front and back of the original check along with the notation “This is a legal copy of your check. You can use it the same way you would use the original check.”  A copy of a substitute check is below for your review:

While change is not always easy, Check 21 will provide benefits such as a more efficient processing of checks and less reliance on physically moving checks from location to location should something happen that would delay air travel.    In the first statement you receive after October 28, 2004, you will receive new disclosure information related to Check 21. The disclosure will further explain Check 21 and the rights you have as a customer should you encounter a problem with a substitute check.    First Savings Bank of Perkasie is working hard to comply with this new law while making this transition as smooth and easy for you as possible. We welcome your questions about Check 21. Please call us so we can work together through this change.