WASHINGTON-President George W. Bush signed the credit union-backed Check 21 Act (H.R. 1474) into law last week. A signing ceremony, which is closed to the general press, took place last Tuesday afternoon (see picture). The bill will allow credit unions to truncate share drafts, sending them electronically, earlier in the process than previously permitted and more often for increased cost savings. Banks for the first time will be able to truncate checks; they previously had to present the paper checks. This became a problem after the Sept. 11 terrorist attacks, which grounded planes for days.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.