Substitute check warranties.

CFR · 2024-01-01 · US · Title 12

(a) (i) The substitute check meets the requirements for legal equivalence described in § 229.51(a)(1) and (2); and (ii) No depositary bank, drawee, drawer, or indorser will receive presentment or return of, or otherwise be charged for, the substitute check, the original check, or a paper or electronic representation of the substitute check or original check such that that person will be asked to make a payment based on a check that it already has paid. (2) A bank that rejects a check submitted for deposit and returns to its customer a substitute check (or a paper or electronic representation of a substitute check) makes the warranties in paragraph (a)(1) of this section regardless of whether the bank received consideration. (b)

official document · source cfr-2024 · id 12:§ 229.52