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Brave new world of banking getting closer with Check 21: for consumers, law could mean end of waiting for checks to clear the bank.

Article Excerpt
A new law takes effect October 28 that could put the sinker on floating checks and represent a death knell to the process of banks returning original checks to consumers.

Mississippi bankers say they're prepared for it.

The Check Clearing for the 21st Century Act, known as Check 21, allows banks to dispense with paper checks and instead transmit electronic images of the check through the check clearing process, lf a consumer or bank anywhere along the chain insists on receiving the original paper check, the law provides use instead of a substitute check such as a laser printout of an electronic image. This law makes an image replacement document (IRD) a legal document and will greatly reduce the amount of time it takes to process transactions.

Without the float time of physically transporting a paper check,...

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