12 U.S.C. § 5001 : US Code - Section 5001: Findings; purposes

Search 12 U.S.C. § 5001 : US Code - Section 5001: Findings; purposes

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superseded any State law, including the Uniform Commercial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