Check Truncation Act of 2003
Latest action · Jun 27, 2003 Returned to the Calendar. Calendar No. 168. (consideration: CR 6/26/2003 S8811)
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedJun 25, 2003
- Passed SenateNot reached
- Passed HouseNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
(Sec. 3) Defines "substitute check" as a paper reproduction of the original check that: (1) contains an image of the front and back of the original; (2) bears a "MICR line" or "magnetic ink character recognition line" containing all the information appearing on the MICR line of the original check (except as provided under generally applicable industry standards for substitute checks to facilitate the processing of substitute checks); and (3) is suitable for automated processing in the same manner as the original.
Defines check truncation as removal of an original paper check from the check collection or return process and sending in its lieu a substitute check (or, by agreement, information relating to the original check), with or without subsequent delivery of the original paper check.
(Sec. 4) Prescribes implementation guidelines, including: (1) the applicability of Federal and State law and designated provisions of the Code of Federal Regulations and the Uniform Commercial Code; (2) substitute check warranties; (3) indemnity procedures; and (4) expedited recredit procedures for consumers and for claimant banks (including notice requirements for reversal of recredit).
(Sec. 8) Sets forth: (1) procedures for claimant banks against an indemnifying bank for expedited recredit; (2) a measure of damages for breach of warranty or failure to comply with requirements that incorporates a comparative negligence standard; (3) a one-year statute of limitations under which the cause of action accrues as of the date the injured party first learns, or reasonably should have learned, of the facts and circumstances giving rise to the cause of action; and (4) consumer education requirements regarding substitute checks.
(Sec. 15) Instructs the Board of Governors of the Federal Reserve System to study and report to Congress on selected factors that impact funds availability.
(Sec. 16) Instructs the Comptroller General to evaluate and report to Congress on the implementation and administration of this Act.
(Sec. 17) Permits the banks involved to vary by agreement the procedures governing expedited recredit under this Act.
Cosponsors
Members who signed on, in the order they did.
Committees 1
Where it was sent and what each committee and subcommittee did with it, in order.
| Chamber | Committee | What it did |
|---|---|---|
| Senate | Banking, Housing, and Urban Affairs Committee | Reported as an original measure Jun 25, 2003Markup Jun 26, 2003 |
Actions 8
Everything that happened, newest first.
- Jun 27, 2003Measure laid before Senate by unanimous consent. (consideration: CR 6/24/2003 S8811)
- Jun 27, 2003Senate incorporated this measure in H.R. 1474 as an amendment.
- Jun 27, 2003Senate passed measure H.R. 1474 in lieu of this measure by Unanimous Consent.
- Jun 27, 2003Returned to the Calendar. Calendar No. 168. (consideration: CR 6/26/2003 S8811)
- Jun 26, 2003Committee on Banking, Housing, and Urban Affairs ordered to be reported an original measure.
- Jun 25, 2003Introduced in Senate
- Jun 25, 2003Committee on Banking, Housing, and Urban Affairs. Original measure reported to Senate by Senator Shelby. With written report No. 108-79.
- Jun 25, 2003Placed on Senate Legislative Calendar under General Orders. Calendar No. 168.
In the Congressional Record 1
Days the Record’s own index lists this bill, newest first, with the pages and the members it names. Pages starting H are the House, S the Senate, E Extensions of Remarks.
| Where | In the Record | Members | Date |
|---|---|---|---|
| Senate | Debate and remarks S8811 | William H. Frist R-TN | Jun 26, 2003 |
Research
What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.
Committee report
Related bills 1
Companion bills and other measures the record links to this one.
| Bill | Title | Relationship | Latest action |
|---|---|---|---|
| HR 1474 | Check 21 Act | Procedurally related | Oct 28, 2003 |
Titles 3
Every title it has carried, official and short, at each stage.
- Official Title as Introduced
- An original bill to facilitate check truncation by authorizing substitute checks, to foster innovation in the check collection system without mandating receipt of checks in electronic form, and to improve the overall efficiency of the Nation's payments system, and for other purposes.
- Short Titles as Introduced
- Check Truncation Act of 2003
- Short Titles as Reported to Senate
- Check Truncation Act of 2003
Subjects
Assigned by the Library of Congress. Policy area: Finance and Financial Sector.
- Bank accounts
- Checks
- Civil actions and liability
- Commerce
- Congress
- Congressional investigations
- Congressional reporting requirements
- Consumer credit
- Consumer education
- Damages
- Finance and Financial Sector
- Governmental investigations
- Indemnity
- Interest
- Law
- Legal fees
- Liability (Law)
- Limitation of actions
- Negligence
- Warranties
Text 1
Each version as it was printed, newest first.
- Jun 25, 2003Reported to Senate
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.