Title 12, Banks and BankingRelease 119-73not60
§5004 Substitute Check Warranties
Title 12 › Chapter 50— CHECK TRUNCATION › § 5004
Summary
When a bank transfers, presents, or returns a paid substitute check, it must promise to all parties in the check chain that the check meets the legal-equivalence rules under section 5003(b) and that no one will be asked to pay the same check twice, even if received in any form.
Full Legal Text
Title 12, §5004
Banks and Banking, Source: USLM XML via OLRC
A bank that transfers, presents, or returns a substitute check and receives consideration for the check warrants, as a matter of law, to the transferee, any subsequent collecting or returning bank, the depositary bank, the drawee, the drawer, the payee, the depositor, and any endorser (regardless of whether the warrantee receives the substitute check or another paper or electronic form of the substitute check or original check) that—
(1)the substitute check meets all the requirements for legal equivalence under section 5003(b) of this title; and
(2)no depositary bank, drawee, drawer, or endorser will receive presentment or return of the substitute check, the original check, or a copy or other paper or electronic version of the substitute check or original check such that the bank, drawee, drawer, or endorser will be asked to make a payment based on a check that the bank, drawee, drawer, or endorser has already paid.
Legislative History
Notes & Related Subsidiaries
Statutory Notes and Related Subsidiaries
Effective Date
Section effective at the end of the 12-month period beginning on Oct. 28, 2003, see section 20 of Pub. L. 108–100, set out as a note under section 5001 of this title.
Reference
Citations & Metadata
Citation
12 U.S.C. § 5004
Title 12, Banks and Banking
Last Updated
Apr 3, 2026
Release point: 119-73not60