A change that you may see in the upcoming weeks regarding how items (or checks you write) may clear your account will be the result of new legislation (referred to as “Check 21”) that affects the banking industry. Under the new laws, banks may use digital pictures (images) of checks instead of actual checks for their transactions in order to speed up check processing. Many banks are already using this technology. This means that you may receive copies of checks instead of your original checks in future bank statements from us. This will be the case when we receive a digital image of your check instead of your original check from another bank. In other words, you will most likely see a combination of digital images and original check copies in your bank statements from The First State Bank.

Digital imaging will enable banks to clear checks you write much faster, thus reducing the potential for fraud. Banks should also be able to research problems and answer questions about checks you write more quickly.

Because of the increasing use of images (pictures of the checks you write), you should also be aware that the color of ink you use to complete checks is very important. Blue or black ink copies (images) much better than other colors. In fact, some colors of ink, such as red or pink, should be avoided entirely. If you use a darker, contrasting ink color (such as blue or black) we should be able to deliver a better product to you. A general rule of thumb is that if the colors of ink used will photocopy well, they usually will provide good images. Please remember that many of these images will be coming to us from other banks and we cannot control the quality of their equipment.

The First State Bank will provide additional “Check 21” information to customers in the form of statement inserts during August or September. So watch for this information in your checking account statement.

To Summarize:

• Digitally imaged checks (copies of your original checks) will clear your account when presented just like your original check were it presented. (the new legislation requires banks to pay these images/copies).
• Imaged checks will clear your account faster thus increasing security of your account information and reducing the potential for fraud.
• It is important to use black, blue, or contrasting ink to ensure that clear, readable copies of your checks are available for you in your bank statement or should you need a copy provided to you (for example, via email).

As the industry changes, we at The First State Bank will continue to work hard to provide you the best customer service. We always want to live up to our motto that you can "Count on Us".