The EFAA also provides that the Board's regulations supersede any inconsistent provision 3 in state law, including the Uniform Commercial Code. In the EFAA, Congress directed the Board to 4 consider requiring, by regulation, a number of measures to improve the check system. Many of these measures focused on improving the process by which unpaid checks are returned to the bank of first deposit.
Other suggested measures related to check truncation. The Board has used its authority under the EFAA to make several important improvements to the 5 check system. The Board's ability to adopt some rules to improve the check system is hampered, however, by the EFAA's limitation on the Board's ability to impose or allocate the risks of loss or 6 liability related to payment transactions.