§ 229.51 General provisions governing substitute checks.

(a) Legal equivalence. A substitute check for which a bank has provided the warranties described in § 229.52 is the legal equivalent of an original check for all persons and all purposes, including any provision of federal or state law, if the substitute check— (1) Accurately represents all of the information on the front and back of the original check as of the time the original check was truncated; and (2) Bears the legend, “This is a legal copy of your check. You can use it the same way you would use the original check.” (b) Reconverting bank duties. A bank shall ensure that a substitute check for which it is the reconverting bank— (1) Bears all indorsements applied by parties that previously handled the check in any form (including the original check, a substitute check, or another paper or electronic representation of such original check or substitute check) for forward collection or return; (2) Identifies the reconverting bank in a manner that preserves any previous reconverting-bank identifications, in accordance with ANS X9.100-140; and (3) Identifies the bank that truncated the original check, in accordance with ANS X9.100-140. (c) Applicable law. A substitute check that is the legal equivalent of an original check under paragraph (a) of this section shall be subject to any provision, including any provision relating to the protection of customers, of this part, the U.C.C., and any other applicable federal or state law as if such substitute check were the original check, to the extent such provision of law is not inconsistent with the Check 21 Act or this subpart.