---
kind: "section"
citation: "12 U.S.C. § 5007"
title: "12"
title_heading: "Banks and Banking"
number: "5007"
heading: "Expedited recredit procedures for banks"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5007"
units:
  - "Chapter 50 — Check Truncation"
---

# §5007. Expedited recredit procedures for banks

- (a) **Recredit claims—**
  - (1) **In general—** A [bank](/usc/12/5002.md?p=2) may make a claim against an [indemnifying bank](/usc/12/5002.md?p=11) for expedited recredit for which that [bank](/usc/12/5002.md?p=2) is indemnified if—
    - (A) the claimant [bank](/usc/12/5002.md?p=2) (or a [bank](/usc/12/5002.md?p=2) that the claimant [bank](/usc/12/5002.md?p=2) has indemnified) has received a claim for expedited recredit from a [consumer](/usc/12/5002.md?p=7) under [section 5006 of this title](/usc/12/5006.md) with respect to a [substitute check](/usc/12/5002.md?p=16) or would have been subject to such a claim had the [consumer](/usc/12/5002.md?p=7)’s [account](/usc/12/5002.md?p=1) been charged;
    - (B) the claimant [bank](/usc/12/5002.md?p=2) has suffered a resulting loss or is obligated to recredit a [consumer account](/usc/12/5002.md?p=8) under [section 5006 of this title](/usc/12/5006.md) with respect to such [substitute check](/usc/12/5002.md?p=16); and
    - (C) production of the original [check](/usc/12/5002.md?p=6), another [substitute check](/usc/12/5002.md?p=16), or a better copy of the original [check](/usc/12/5002.md?p=6) is necessary to determine the validity of the charge to the [customer](/usc/12/5002.md?p=9) [account](/usc/12/5002.md?p=1) or any warranty claim connected with such [substitute check](/usc/12/5002.md?p=16).
  - (2) **120-day period—** Any claim under [paragraph (1)](#a-1) may be submitted by the claimant [bank](/usc/12/5002.md?p=2) to an [indemnifying bank](/usc/12/5002.md?p=11) before the end of the 120-day period beginning on the date of the transaction that gave rise to the claim.
- (b) **Procedures for claims—**
  - (1) **In general—** To make a claim under [subsection (a)](#a) for an expedited recredit relating to a [substitute check](/usc/12/5002.md?p=16), the claimant [bank](/usc/12/5002.md?p=2) shall send to the [indemnifying bank](/usc/12/5002.md?p=11)—
    - (A) a description of—
      - (i) the claim, including an explanation of why the [substitute check](/usc/12/5002.md?p=16) cannot be properly charged to the [consumer account](/usc/12/5002.md?p=8); or
      - (ii) the warranty claim;
    - (B) a statement that the claimant [bank](/usc/12/5002.md?p=2) has suffered a loss or is obligated to recredit the [consumer](/usc/12/5002.md?p=7)’s [account](/usc/12/5002.md?p=1) under [section 5006 of this title](/usc/12/5006.md), together with an estimate of the amount of the loss or recredit;
    - (C) the reason why production of the original [check](/usc/12/5002.md?p=6), another [substitute check](/usc/12/5002.md?p=16), or a better copy of the original [check](/usc/12/5002.md?p=6) is necessary to determine the validity of the charge to the [consumer account](/usc/12/5002.md?p=8) or the warranty claim; and
    - (D) information sufficient for the [indemnifying bank](/usc/12/5002.md?p=11) to identify the [substitute check](/usc/12/5002.md?p=16) and to investigate the claim.
  - (2) **Requirements relating to copies of substitute checks—** If the information submitted by a claimant [bank](/usc/12/5002.md?p=2) pursuant to [paragraph (1)](#b-1) in connection with a claim for an expedited recredit includes a copy of any [substitute check](/usc/12/5002.md?p=16) for which any such claim is made, the claimant [bank](/usc/12/5002.md?p=2) shall take reasonable steps to ensure that any such copy cannot be—
    - (A) mistaken for the legal equivalent of the [check](/usc/12/5002.md?p=6) under [section 5003(b) of this title](/usc/12/5003.md?p=b); or
    - (B) sent or handled by any [bank](/usc/12/5002.md?p=2), including the [indemnifying bank](/usc/12/5002.md?p=11), as a [forward collection](/usc/12/5002.md?p=10) or returned [check](/usc/12/5002.md?p=6).
  - (3) **Claim in writing—**
    - (A) **In general—** An [indemnifying bank](/usc/12/5002.md?p=11) may, in the discretion of the [bank](/usc/12/5002.md?p=2), require the claimant [bank](/usc/12/5002.md?p=2) to submit the information required by [paragraph (1)](#b-1) in writing, including a copy of the written or electronically submitted claim, if any, that the [consumer](/usc/12/5002.md?p=7) provided in accordance with [section 5006(b) of this title](/usc/12/5006.md?p=b).
    - (B) **Means of submission—** An [indemnifying bank](/usc/12/5002.md?p=11) that requires a submission of information under [subparagraph (A)](#b-3-A) may permit the claimant [bank](/usc/12/5002.md?p=2) to make the submission electronically, if the claimant [bank](/usc/12/5002.md?p=2) has agreed to communicate with the [indemnifying bank](/usc/12/5002.md?p=11) in that manner.
- (c) **Recredit by indemnifying bank—**
  - (1) **Prompt action required—** No later than 10 [business days](/usc/12/5002.md?p=5) after the [business day](/usc/12/5002.md?p=5) on which an [indemnifying bank](/usc/12/5002.md?p=11) receives a claim under [subsection (a)](#a) from a claimant [bank](/usc/12/5002.md?p=2) with respect to a [substitute check](/usc/12/5002.md?p=16), the [indemnifying bank](/usc/12/5002.md?p=11) shall—
    - (A) provide, to the claimant [bank](/usc/12/5002.md?p=2), the original [check](/usc/12/5002.md?p=6) (with respect to such [substitute check](/usc/12/5002.md?p=16)) or a copy of the original [check](/usc/12/5002.md?p=6) (including an image or a [substitute check](/usc/12/5002.md?p=16)) that—
      - (i) accurately represents all of the information on the front and back of the original [check](/usc/12/5002.md?p=6) (as of the time the original [check](/usc/12/5002.md?p=6) was truncated); or
      - (ii) is otherwise sufficient to determine the [bank](/usc/12/5002.md?p=2)’s claim is not valid; and
    - (B) recredit the claimant [bank](/usc/12/5002.md?p=2) for the amount of the claim up to the amount of the [substitute check](/usc/12/5002.md?p=16), plus interest if applicable; or
    - (C) provide information to the claimant [bank](/usc/12/5002.md?p=2) as to why the [indemnifying bank](/usc/12/5002.md?p=11) is not obligated to comply with subparagraph [(A)](#c-1-A) or [(B)](#c-1-B).
  - (2) **Recredit does not abrogate other liabilities—** Providing a recredit under this subsection to a claimant [bank](/usc/12/5002.md?p=2) with respect to a [substitute check](/usc/12/5002.md?p=16) shall not absolve the [indemnifying bank](/usc/12/5002.md?p=11) from liability for claims brought under any other law or from additional damages under section [5005](/usc/12/5005.md) or [5009](/usc/12/5009.md) of this title with respect to such [check](/usc/12/5002.md?p=6).
  - (3) **Refund to indemnifying bank—** If a claimant [bank](/usc/12/5002.md?p=2) reverses, in accordance with [section 5006(e) of this title](/usc/12/5006.md?p=e), a recredit previously made to a [consumer account](/usc/12/5002.md?p=8) under [section 5006(c) of this title](/usc/12/5006.md?p=c), or otherwise receives a [credit](/usc/12/5481.md?p=7) or recredit with regard to such [substitute check](/usc/12/5002.md?p=16), the claimant [bank](/usc/12/5002.md?p=2) shall promptly refund to any [indemnifying bank](/usc/12/5002.md?p=11) any amount previously advanced by the [indemnifying bank](/usc/12/5002.md?p=11) in connection with such [substitute check](/usc/12/5002.md?p=16).
- (d) **Production of original check or a sufficient copy governed by section 5005(d)—** If the [indemnifying bank](/usc/12/5002.md?p=11) provides the claimant [bank](/usc/12/5002.md?p=2) with the original [check](/usc/12/5002.md?p=6) or a copy of the original [check](/usc/12/5002.md?p=6) (including an image or a [substitute check](/usc/12/5002.md?p=16)) under [subsection (c)(1)(A)](#c-1-A), [section 5005(d) of this title](/usc/12/5005.md?p=d) shall govern any right of the [indemnifying bank](/usc/12/5002.md?p=11) to any repayment of any funds the [indemnifying bank](/usc/12/5002.md?p=11) has recredited to the claimant [bank](/usc/12/5002.md?p=2) pursuant to [subsection (c)](#c).

## Source credit

(Pub. L. 108–100, § 8, Oct. 28, 2003, 117 Stat. 1186.)

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective at the end of the 12-month period beginning on Oct. 28, 2003, see section 20 of Pub. L. 108–100, set out as a note under section 5001 of this title.