Which of the following holds true in case of a substitute check? A substitute ch

Question

Which of the following holds true in case of a substitute check?

A substitute check is an electronic reproduction of the original check which is suitable for automated processing in the same manner as the original check.

Only the Federal Reserve can provide substitute checks in place of the original checks in the check processing stream.

In the check collection process it is not required that the image be converted to a substitute check; the electronic image itself suffice.

The Check 21 Act replaces existing state laws regarding the substitute checks.

The Uniform Commercial Code doesn't apply to a transaction dealing with substitute checks.

Explanation / Answer

Only the following holds true

In the check collection process it is not required that the image be converted to a substitute check: theelectronic image itself may suffice.

a) A substitute check is a paper reproduction of an original check, rather than electronic reproduction...

b) Banks can provide substitute checks ...  

c) TRUE

d) The Check 21 Act does not replace the existing state laws, however, it supercedes them.

e) Substitute checks transactions are subject to UCC

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