---
kind: "section"
citation: "12 U.S.C. § 5001"
title: "12"
title_heading: "Banks and Banking"
number: "5001"
heading: "Findings; purposes"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5001"
units:
  - "Chapter 50 — Check Truncation"
---

# §5001. Findings; purposes

- (a) **Findings—** The Congress finds as follows:
  - (1) In the Expedited Funds Availability Act [[12 U.S.C. 4001](/usc/12/4001.md) et seq.], enacted on August 10, 1987, the Congress directed the [Board](/usc/12/5002.md?p=4) of Governors of the Federal Reserve System to consider establishing regulations requiring Federal reserve [banks](/usc/12/5002.md?p=2) and [depository institutions](/usc/12/1861.md?p=b-4) to provide for [check](/usc/12/5002.md?p=6) truncation, in order to improve the [check](/usc/12/5002.md?p=6) processing system.
  - (2) In that same Act, the Congress—
    - (A) provided the [Board](/usc/12/5002.md?p=4) of Governors of the Federal Reserve System with full authority to regulate all aspects of the payment system, including the receipt, payment, collection, and clearing of [checks](/usc/12/5002.md?p=6), and related functions of the payment system pertaining to [checks](/usc/12/5002.md?p=6); and
    - (B) directed that the exercise of such authority by the [Board](/usc/12/5002.md?p=4) superseded any [State](/usc/12/5002.md?p=17) law, including the [Uniform Commercial Code](/usc/12/5002.md?p=19), as in effect in any [State](/usc/12/5002.md?p=17).
  - (3) [Check](/usc/12/5002.md?p=6) truncation is no less desirable in 2003 for both financial service [customers](/usc/12/5002.md?p=9) and the financial services industry, to reduce costs, improve efficiency in [check](/usc/12/5002.md?p=6) collections, and expedite funds availability for [customers](/usc/12/5002.md?p=9) than it was over 15 years ago when Congress first directed the [Board](/usc/12/5002.md?p=4) to consider establishing such a process.
- (b) **Purposes—** The purposes of this chapter are as follows:
  - (1) To facilitate [check](/usc/12/5002.md?p=6) truncation by authorizing [substitute checks](/usc/12/5002.md?p=16).
  - (2) To foster innovation in the [check](/usc/12/5002.md?p=6) collection system without mandating receipt of [checks](/usc/12/5002.md?p=6) in electronic form.
  - (3) To improve the overall efficiency of the Nation’s payments system.

## Source credit

(Pub. L. 108–100, § 2, Oct. 28, 2003, 117 Stat. 1177.)

## Notes

### Editorial Notes

### References in Text

The Expedited Funds Availability Act, referred to in subsec. (a)(1), (2), is title VI of Pub. L. 100–86, Aug. 10, 1987, 101 Stat. 635, which is classified principally to chapter 41 (§ 4001 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 4001 of this title and Tables.

This chapter, referred to in subsec. (b), was in the original “this Act”, meaning Pub. L. 108–100, Oct. 28, 2003, 117 Stat. 1177, which is classified generally to this chapter. For complete classification of this Act to the Code, see Short Title note set out below and Tables.

### Statutory Notes and Related Subsidiaries

### Effective Date

Pub. L. 108–100, § 20, Oct. 28, 2003, 117 Stat. 1194, provided that: “This Act [enacting this chapter, amending section 412 of this title, and enacting provisions set out as notes under this section] shall take effect at the end of the 12-month period beginning on the date of the enactment of this Act [Oct. 28, 2003], except as otherwise specifically provided in this Act.”

### Short Title

Pub. L. 108–100, § 1(a), Oct. 28, 2003, 117 Stat. 1177, provided that: “This Act [enacting this chapter, amending section 412 of this title, and enacting provisions set out as notes under this section] may be cited as the ‘Check Clearing for the 21st Century Act’ or the ‘Check 21 Act’.”