The most significant aspect of the draft Check Truncation Act is its requirement that a substitute check be considered the legal equivalent of the original check for all purposes and for all parties and that banks accept the substitute check in lieu of the original check.
In particular, banks would no longer be able to demand the original check because the substitute check would be valid not only as proof of payment but also as a negotiable instrument. The draft law would not mandate that banks truncate checks, or present checks electronically, or receive checks electronically. Those decisions would be left to the discretion of individual banks.