AFP Provides "Check 21" Resource for Corporate Treasury

AFP Releases FAQ about Check 21 and Its Impact

Bethesda, MD – November 5, 2004 –The Association for Financial Professionals (AFP) has issued a new resource to address the impact of The Check Clearing for the 21st Century Act ("Check 21") on corporate treasury professionals.

Check 21 removes legal barriers to check truncation. It permits banks to replace original checks with "substitute checks" and guarantees legal equivalence between original checks and "substitute checks."

Frequently Asked Questions about Check 21 and Its Impact on Corporate Treasury provides answers to important questions regarding how treasury management practices may be affected by Check 21, especially controlled disbursement, positive pay and other fraud control measures.

The document notes that companies should expect banks to revise and update agreements governing account services for collections and disbursements. The document also explains the advantages to companies of “remote capture”—the creation of check images by the company for electronic deposit to the bank—as well as the liabilities that companies assume when they do so.

“Corporate treasury professionals need to know what Check 21 does and does not do,” said Arlene Chapman, CTP, the Association for Financial Professionals’ Senior Consultant, Technical Services. “This FAQ is a valuable reference for AFP members in determining how Check 21 is likely to affect their organizations.”

The FAQ is searchable by subject and provides a series of questions treasury professionals can discuss with bank representatives. The complete document can be found at http://www.afponline.org/pub/res/aoi/check_21.html and is available to AFP members and registered users.

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The Association for Financial Professionals in Bethesda, Maryland supports more than 14,000 individual members from a wide range of industries through all stages of their careers in treasury and financial management. AFP is the preferred resource for financial professionals for continuing education, financial tools and publications, career development, certification, research, representation to legislators and regulators and the development of industry standards. For more information about AFP visit www.afponline.org