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U.S. Code as of:
01/19/04
Section 5011. Consumer awareness
(a) In general
Each bank shall provide, in accordance with subsection (b), a
brief notice about substitute checks that describes -
(1) how a substitute check is the legal equivalent of an
original check for all purposes, including any provision of any
Federal or State law, and for all persons, if the substitute
check -
(A) accurately represents all of the information on the front
and back of the original check as of the time at which the
original check was truncated; and
(B) bears the legend: "This is a legal copy of your check.
You can use it in the same way you would use the original
check."; and
(2) the consumer recredit rights established under section 5006
of this title when a consumer believes in good faith that a
substitute check was not properly charged to the account of the
consumer.
(b) Distribution
(1) Existing customers
With respect to consumers who are customers of a bank on the
effective date of this chapter and who receive original checks or
substitute checks, a bank shall provide the notice described in
subsection (a) to each such consumer no later than the first
regularly scheduled communication with the consumer after the
effective date of this chapter.
(2) New account holders
A bank shall provide the notice described in subsection (a) to
each consumer who will receive original checks or substitute
checks, other than existing customers referred to in paragraph
(1), at the time at which the customer relationship is initiated.
(3) Mode of delivery
A bank may send the notices required by this subsection by
United States mail or by any other means through which the
consumer has agreed to receive account information.
(4) Consumers who request copies of checks
Notice shall be provided to each consumer of the bank that
requests a copy of a check and receives a substitute check, at
the time of the request.
(c) Model language
(1) In general
Before the end of the 9-month period beginning on October 28,
2003, the Board shall publish model forms and clauses that a bank
may use to describe each of the elements required by subsection
(a).
(2) Safe harbor
(A) In general
A bank shall be treated as being in compliance with the
requirements of subsection (a) if the bank's substitute check
notice uses a model form or clause published by the Board and
such model form or clause accurately describes the bank's
policies and practices.
(B) Deletion or rearrangement
A bank may delete any information in the model form or clause
that is not required by this chapter or rearrange the format.
(3) Use of model language not required
This section shall not be construed as requiring any bank to
use a model form or clause that the Board prepares under this
subsection.
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