Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ARLINGTON. Va.-NAFCU basically supported the Treasury Department’s interim final rule regarding the application of Check 21 to Treasury checks despite redundant safekeeping measures. In a comment letter from President and CEO Fred Becker, NAFCU stated its support for permitting financial institutions to present substituted checks instead of paper originals. Treasury’s regulation would also allow financial institutions to present electronic images rather than original or substitute checks, of which NAFCU approved. NAFCU’s letter noted, “The interim rule establishes legal equivalence of electronic checks only as between Treasury and the financial institution that presents the electronic image to Treasury for payment and does not create the right to transfer, return or present an electronic image of a Treasury check to any other person.” Additionally, the rule clarifies that financial institutions need not ensure watermarks on substitute checks or electronic images of Treasury checks. However, NAFCU felt that safekeeping requirements in the interim final rule for document storage after a substitute check or electronic image is made but prior to being destroyed were redundant and unnecessary. The scenarios are already covered under other portions of Check 21 and the Fair and Accurate Credit Transactions Act, NAFCU contended. Finally, Treasury asked whether additional steps should be taken to prohibit financial institutions from making truncated checks available to third parties for commercial or business purposes. Becker responded, “NAFCU is not aware of any such abuse of information contained on Treasury checks either currently or in the past. Further, NAFCU does not believe that the ability of financial institutions to truncate and retain original checks under the Check 21 Act will increase such a risk.NAFCU believes that the current regulatory requirements and practices should provide Treasury sufficient assurances that information contained on Treasury checks will not be inappropriately shared.”

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

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • 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.

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.