Deposit Line Warranty For Free

A substitute check, which is legally equivalent to the original check, as well as a check image or a line item statement, may be used as proof of payment. An original paper check is not necessary.

The Law ? Check 21 Act No person or entity is required to issue a substitute check. However, a properly prepared substitute check is the legal equivalent of the original check. Therefore, a paying bank must receive a legally equivalent substitute check just as it would the original check.

To make check processing faster, federal law permits banks to replace original checks with ?substitute checks?. These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check. The front of a substitute check states: ?This is a legal copy of your check.

Answer provided by. Not to worry, while you cannot use the same check number twice, you won't face any penalties because you've done so. Banks usually have an internal database of checks that have already been deposited so when you use the same check number, the bank will recognize it and reject it.

Warranties are simply subsidiary provisions that are related to the contract's objective. If someone breaches a condition, the contract may be terminated. If someone breaches a warranty, the other party can claim damages for the breach. Conditions are imperative; otherwise, a contract can be denied.

If you try cashing old checks that bounce, the bank may charge a ?deposit item returned? fee. The fee varies from bank to bank.

Why are substitute checks created? Some financial institutions find that exchanging electronic images of checks with other financial institutions is faster and more efficient than physically transporting paper checks. In certain circumstances, however, financial institutions may need to use a paper check.