Check 21- Important Changes to Your Checking Account

What you need to know
On October 28, 2004 the Check Clearing for the 21st Century Act, also known as Check 21, went into effect. This new federal legislation is designed to streamline our country's check processing system, making our financial system faster, more efficient and less vulnerable to disruptions caused by acts of terrorism or natural disasters.

How does Check 21 work?
In the past, paper checks were physically transported from place to place - often traveling hundreds of miles and taking several days before reaching their destination. Check 21 now allows check processors to convert paper checks into electronic images. These digital images can be sent from place to place virtually instantaneously in place of the paper check. If you request a paper check, the financial institution or its check processor can use the electronic image and payment information to create a paper check, called a "substitute check."

What happens to my paper checks?
Under the new legislation, your original paper check may be scanned and then destroyed when it enters the processing stream - when the payee's institution receives it.

What are the benefits of Check 21?
Check processing will be faster and more secure. Your personal account will also be more secure, since fraudulent transactions will be detected faster. Our financial system will be safer as a whole, and officials will be able to respond quickly in times of crisis.

• Float time may be reduced:
Because checks will clear faster, deposits should post faster! You will need to be sure you have enough funds in your checking account to cover any checks you write.
• Substitute checks are available online:
If you request a paper copy of a check, you may begin to see these substitute checks, depending on how quickly the payee's financial institution adapts to the legislation. Substitute checks will contain all the information on your original check, front and back. A substitute check is the legal equivalent of the paper check, and can be used as proof of payment.

• Handling check errors:: If you believe you've lost money because of an error involving a substitute check, you may have the right to file a claim for an expedited refund. We can provide specific guidelines on request. Please call 301-249-1800 or 1-888-NASA-FCU for assistance. If you have any further questions regarding Check 21, call 301-249-1800 or 1-888-NASA-FCU.