| |
Introduction to the Check 21 Act
- Planes, trains and automobiles will no longer be the "wild cards" in the check transportation system. The calamities and delays they have caused in this arena will be a thing of the past.
- The costs of check clearing will be dramatically reduced. The speed of check clearing will be dramatically increased.
- Substitute checks which comply with the requirements of the Check 21 Act will be considered the legal equivalent of an original paper check
All of this are the projected result of the passage of the Check 21 Act by Congress. It takes effect 12 months after enactment.
Implementing the changes this legislation brings will have a dramatic effect on this industry. The changes are systemic and have far greater effects on bank operations than any regulatory change in recent history.
Every U.S. financial institution will need a working group of operational and data processing personnel to assess and plan for the impact of this legislative change. For less than it would cost to send a single employee to a full-day program, you can expose your entire working group to a solid orientation delivered by industry experts.
With passage of this federal legislation, checks can be "truncated" or held in place at the bank of first deposit or any subsequent clearing bank. The truncating bank then creates an "image replacement document" which it forwards to the drawee bank for payment. In turn, the drawee bank will only have that electronic image to provide to consumers, and there are new notice requirements and new procedures for consumers to claim incorrect charges.
There is no requirement for an agreement between individual institutions. Neither the drawee bank nor its customers will have the opportunity to "opt out."
This Webinar is the introductory course your personnel need to begin evaluating the enormous impact this legislation has on the industry and your institution. It addresses:
- the new terms the legislation uses,
- requirements for a legally effective substitute check,
- new warranties that run with the substitute check,
- indemnification provisions,
- expedited recrediting procedures for recrediting improper charges (mechanisms similar to those for "unauthorized transfers" under Regulation E will apply to checks),
- special handling for Treasury checks,
- liability for negligence, and
- notices to consumers.
About the speakers:
Ken Golliher
Ken is a principal with Pegasus Educational Services, LLC, a training firm headquartered in Louisville, Kentucky. He is an experienced banker with a unique ability to reduce complex legal concepts to plain English. He has explained the "why" and "how" of regulations to thousands of financial institution personnel and examiners. Ken's banking career began in 1972 and includes serving as a teller, commercial operations manager and as trust department legal counsel in a state and a national bank. For ten years he headed the education division of a regional consulting firm for financial institutions. He has served on the faculty of the LSU Graduate School of Banking, the OTS' Level I Compliance School and the FDIC's Advanced Consumer Protection school for examiners. He has presented seminars in more than 25 states and has served as an instructor at compliance schools sponsored by the Illinois, Indiana, Iowa, Georgia, Kansas, Kentucky, Nebraska, Oklahoma, Pennsylvania and Texas bankers associations. He is a member of the Society for Applied Learning Technology. He is also a "BOL Guru."
Mary Beth Guard
Mary Beth Guard has been teaching financial privacy to bankers since the early 1990s and has authored more than a hundred articles on privacy-related subjects. In addition, she has created privacy cheat sheets and matrices used by thousands of bankers nationwide. Currently serving as Executive Editor of BankersOnline.com, Mary Beth has had a long and distinguished career, focusing on the banking industry since 1984. Previously, Mary Beth served as EVP/General Counsel and COO for the Oklahoma Bankers Association and General Counsel for the Oklahoma State Banking Department.
John Burnett
John Burnett is a 1979 alumnus of the ABA National Compliance School, and has served on its faculty for several years. He graduated with honors with the Class of 1990 from ABA’s Stonier Graduate School of Banking. He is also a graduate of the BAI’s and the Massachusetts Banker Association’s Schools of Banking. He joined Cape Cod Bank and Trust Company in 1971. He assumed his role as Compliance Officer in 1976. He also serves as corporate secretary and secretary of CCBT’s Board of Directors, as well as clerk of the bank’s holding company.
John's bank has been using a checkless statement for its MMDAs for several years with minimal client relations problems. He is an active BOL "guru" participant in discussions relative to check processing and the UCC. He is also experienced in fielding error-resolution challenges under Regulation E, which should have some parallels in whatever Federal Reserve regulations are used to implement Section 7 of Check 21.
About the seminar
This seminar will be delivered utilizing state-of-the-art technology. From the comfort of your office or conference room, you will receive the audio portion of the seminar via telephone, with companion slides, Web pages, polls, Q&A being delivered simultaneously over the Web. One AUDIO line per location can be placed on speaker phone to allow multiple participants.
Handouts will be provided and we welcome questions during and after the seminar, as well as in advance. Questions received after the seminar will be posted on a special Web page for later viewing by seminar attendees.
Contact Information: Billing questions can be directed to Carin Eisenhauer, carin@bankersonline.com. All other questions may be directed to mpetry@bankersonline.com
TEST YOUR SYSTEM: Click below to test receiving the presentation using Windows Media Player.
|
|
