Important Information About Your Checking Account
The Check Clearing Act for the 21st Century Act

Your banking representatives at Countybank want you to know about new legislation affecting all checks and check writers in our country that will take effect on October 28, 2004. The Check Clearing for the 21st Century Act, commonly referred to simply as "Check 21," permits any person or entities processing a traditional paper check to convert that check into an electronic image. The new electronic check clearing method can reduce the time it takes for a check you write to be posted to your checking account. The improvements fostered by Check 21 are intended to allow us to serve you better by decreasing fraud and increasing security as checks clear faster, helping you and us to spot potential problems faster! Check 21 created a new legal equivalent of your original paper check called a "Substitute Check."

What is a "Substitute Check?"

To make check processing faster, the new Federal law permits banks to replace original checks with "substitute checks." These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check. The front of a substitute check states: "This is a legal copy of your check. You can use it the same way you would use the original check." We have provided a copy of the front of a sample substitute check for your review.

Some or all of the checks that you receive back from us in your regular statement may be images of substitute checks. After October 28, 2004, all banks and customers must comply. You cannot opt out of receiving substitute checks back instead of your original check. The person or entity that creates the electronic image of your check is responsible for destroying your original check.

Can I get my original check back as proof of payment?

You may use a substitute check as proof of payment just like the original check. Check 21 grants the new substitute check the same legal status as your original check. Retailers, service vendors and courts of law are all required to accept a substitute check as proof of payment in the same manner they would accept the original paper check written by you.

What are my rights regarding substitute checks?

Countybank will promptly investigate all valid account issues, for consumer and commercial accounts, just like we always have. In certain cases, Federal law provides a special expedited procedure that allows consumers (non-business account holders) to request a refund for losses you suffer if a substitute check is posted to your account (for example, if you think that we withdrew the wrong amount from your account or that we withdrew money from your account more than once for the same check). The losses you may attempt to recover under this procedure may include the amount that was withdrawn from your account and fees that were charged as a result of the withdrawal (for example, bounced check fees). Contact us immediately if you think there is a problem regarding your account.

How will Check 21 affect me immediately?

Since Check 21 reduces the dependency on physical transportation, it is likely that many of your checks will clear faster. It will be important that you only write checks for money that is already deposited and available in your checking account.