![]() ![]() The right to convert the original check into an image raises the question, “What if a fraudulent or altered check is converted and then shredded?” The Indemnity provision addresses that question. If necessary, the paying bank or its processor can re-convert the electronic image into a paper document known as a “substitute check” or Image Replacement Document (IRD). Check 21 gives financial institutions the right to convert the paper checks they receive into electronic images, to process those images for payment instead of the original paper checks, and to destroy those paper checks after an undefined period of time.
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