PlainBillCongress, translated.Legislation. Context. Public interest.Congressional Research Service
Version 48 · Conference report filed in House · Oct 1, 2003
Check Clearing for the 21st Century Act, or Check 21 Act - Sets forth a statutory framework under which a substitute check is the legal equivalent of an original check for all purposes, 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."
(Sec. 3) Defines "substitute check" as a paper reproduction of the original check that: (1) contains an image of the front and back of the original; (2) bears a "MICR line" or "magnetic ink character recognition line" containing all the information appearing on the MICR line of the original check; (3) conforms, in paper stock, dimension, and otherwise, with generally applicable industry standards for substitute checks; and (4) is suitable for automated processing in the same manner as the original. Defines check truncation as removing an original paper check from the check collection or return process and sending in lieu of it a substitute check or, by agreement, information relating to the original check (including data taken from the MICR line of the original check or an electronic image of the original check), whether with or without subsequent delivery of the original paper check. (Sec. 4) Prescribes implementation guidelines covering: (1) bank endorsements and identification of the reconverting bank (a bank that creates a substitute check or is the first bank to transfer or present such a check already created by a non-bank person); (2) the applicability of Federal and State law, the Code of Federal Regulations, and the Uniform Commercial Code; (2) substitute check warranties; (3) indemnity procedures, including a comparative negligence standard; and (4) expedited recredit procedures for consumers and for claimant banks in instances where a substitute check is improperly charged to an account (including notice requirements for reversal of a recredit). (Sec. 8) Sets forth: (1) procedures for claimant banks against an indemnifying bank for expedited recredit; (2) excused bank delays owing to emergency conditions; (3) a measure of damages for breach of warranty or failure to comply with requirements that incorporates a comparative negligence standard; (4) a one-year statute of limitations under which the cause of action accrues as of the date the injured party first learns, or reasonably should have learned, of the facts and circumstances giving rise to the cause of action; and (5) consumer education requirements regarding substitute checks. (Sec. 14) States that any provision of this Act pertaining to expedited recredit procedures for banks may be varied by agreement of the banks involved. (Sec. 16) Instructs the Board of Governors of the Federal Reserve System (Board) to study and report to Congress on: (1) the percentage of total checks cleared in which the paper check is not returned to the paying bank; (2) the extent to which banks make funds available to consumers for local and nonlocal checks before the expiration of maximum hold periods; (3) the length of time within which depositary banks learn of the nonpayment of local and nonlocal checks; (4) the increase or decrease in check-related losses over the study period; and (5) the appropriateness of certain time periods and amount limits applicable under the Expedited Funds Availability Act, as in effect on the date of enactment of this Act. (Sec. 17) Directs the Board to include in subsequent annual reports the amount of operating costs attributable to transportation of commercial checks between Federal Reserve bank check processing centers, including an estimate of the Federal Reserve banks' imputed revenues derived from such transportation. (Sec. 18) Instructs the Comptroller General to evaluate and report to Congress on the implementation and administration of this Act. (Sec. 19) Authorizes appropriations to the Secretary of the Treasury for fiscal years beginning after FY 2003 to replace the deposit of compensating balances with direct U.S. payments to reimburse financial institutions in their capacity as depositaries and financial agents of the United States for all services required by the Secretary (or a designee) to be performed on behalf of the Secretary or another Federal agency, including services rendered before FY 2004. (Currently the Secretary compensates financial institutions for various critical depositary and financial agency services provided for or on behalf of the United States by: (1) placing large compensating balances on deposit in such institutions; (2) using imputed interest on such funds to offset charges for such services; and (3) increasing or decreasing the size of such balances as interest rates fluctuate or the public debt outstanding reaches the statutory debt limit.) Prescribes procedural guidelines for the Secretary to promptly begin phasing in the use of appropriations to pay such institutions and to expedite the transition away from the use of compensating balances. Requires the Secretary to report on the use of compensating balances and on the use of appropriations authorized for such purpose for each fiscal year.
People & committees
Rep. Hart, Melissa A. [R-PA-4] · R–PA
Legislative record
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Became Public Law No: 108-100.
Became Public Law No: 108-100.
Signed by President.
Signed by President.
Presented to President.
Presented to President.
Message on Senate action sent to the House.
Senate agreed to conference report by Unanimous Consent. (consideration: CR S12632-12633)
Conference report agreed to in Senate: Senate agreed to conference report by Unanimous Consent.(consideration: CR S12632-12633)
Conference papers: Senate report and manager's statement and message on House action held at the desk in Senate.
On agreeing to the conference report Agreed to by voice vote. (consideration: CR H9293)
Motions to reconsider laid on the table Agreed to without objection.
Conference report agreed to in House: On agreeing to the conference report Agreed to by voice vote.(consideration: CR H9293)
The previous question was ordered without objection.
DEBATE - The House proceeded with one hour of debate on the conference report to accompany H.R. 1474.
Mr. Oxley brought up conference report H. Rept. 108-291 by previously agreed to special order. (consideration: CR H9289-9293)
Conference report H. Rept. 108-291 filed. (text of conference report: CR H9083-9090)
Conference report filed: Conference report H. Rept. 108-291 filed.(text of conference report: CR H9083-9090)
Message on Senate action sent to the House.
Senate insists on its amendment, agrees to request for a conference, appoints conferees Shelby; Bennett; Allard; Sarbanes; Johnson. (consideration: CR S9431)
Message on House action received in Senate and at desk: House requests a conference.
The Speaker appointed conferees for consideration of the House bill and the Senate amendment, and modifications committed to conference: Oxley, Bachus, LaTourette, Hart, Tiberi, Frank (MA), Sanders, and Ford.
Motion to reconsider laid on the table Agreed to without objection.
On motion that the House disagree to the Senate amendment, and request a conference Agreed to without objection. (consideration: CR H6582)
Mr. Tiberi asked unanimous consent that the House disagree to the Senate amendment, and request a conference.
Message on Senate action sent to the House.
Passed Senate in lieu of S. 1334 with an amendment by Unanimous Consent. (text: CR S8811-8815)
Passed/agreed to in Senate: Passed Senate in lieu of S. 1334 with an amendment by Unanimous Consent.(text: CR S8811-8815)
Senate struck all after the Enacting Clause and substituted the language of S.1334.
Measure laid before Senate by unanimous consent. (consideration: CR S8811-8815)
Senate Committee on Banking, Housing, and Urban Affairs discharged by Unanimous Consent.
Senate Committee on Banking, Housing, and Urban Affairs discharged by Unanimous Consent.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Motion to reconsider laid on the table Agreed to without objection.
On passage Passed by the Yeas and Nays: 405 - 0 (Roll no. 246).
House roll call 246 · Individual votesPassed/agreed to in House: On passage Passed by the Yeas and Nays: 405 - 0 (Roll no. 246).
House roll call 246 · Individual votesConsidered as unfinished business. (consideration: CR H5022)
POSTPONED VOTE - At the conclusion of debate on H.R. 1474 the Chair put the question on passage of the bill, as amended, and by voice vote, announced that the ayes had prevailed. Mr. Bachus demanded the yeas and nays and the Chair postponed further proceedings until later in the legislative day.
The previous question was ordered pursuant to the rule.
The House rose from the Committee of the Whole House on the state of the Union to report H.R. 1474.
DEBATE - The Committee of the Whole proceeded with debate on the Hart amendment under the five minute rule.
GENERAL DEBATE - The Committee of the Whole proceeded with one hour of general debate on H.R. 1474.
The Speaker designated the Honorable Ray LaHood to act as Chairman of the Committee.
House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 256 and Rule XXIII.
Rule provides for consideration of H.R. 1474 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit. Measure will be read by section. Bill is open to amendments.
Considered under the provisions of rule H. Res. 256. (consideration: CR H4996-5005; text of measure as reported in House: CR H5001, H5002-5005)
Rule H. Res. 256 passed House.
Rules Committee Resolution H. Res. 256 Reported to House. Rule provides for consideration of H.R. 1474 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit. Measure will be read by section. Bill is open to amendments.
Placed on the Union Calendar, Calendar No. 67.
Reported (Amended) by the Committee on Financial Services. H. Rept. 108-132.
Reported (Amended) by the Committee on Financial Services. H. Rept. 108-132.
Ordered to be Reported (Amended) by Voice Vote.
Committee Consideration and Mark-up Session Held.
Forwarded by Subcommittee to Full Committee by Voice Vote.
Subcommittee Consideration and Mark-up Session Held.
Subcommittee Hearings Held.
Referred to the Subcommittee on Financial Institutions and Consumer Credit.
Referred to the House Committee on Financial Services.
Introduced in House
Introduced in House
Primary sources
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Source last updated: Apr 7, 2025. Consult Congress.gov for the current record.
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