Under the Check 21 Act:

A) banks must accept checks in electronic form.
B) banks are permitted to truncate original checks and process check information electronically.
C) banks must create substitute checks which are the legal equivalent of the original checks.
D) banks must keep the paper checks on file for 90 days.

Check 21 Act

A law that allows banks to process checks electronically, speeding up check clearing and reducing the need for physical transportation of checks.

Substitute Checks

Paper copies created from an original check that are legally equivalent for banking purposes, allowing for electronic processing.

Truncate

To shorten something by cutting off a part of it, commonly used in the context of modifying data, strings, or numerical values in computing.