The act facilitates check truncation by creating a new negotiable instrument called a substitute check, which would permit banks to truncate the original checks, to process the check information electronically, and to deliver substitute checks to banks that want to continue receiving paper checks.
34. Thank you very much for your patient attention. References: Tobias Adrian, Emanuel Moench, and Hyun Song Shin (2010), “Macro-risk Premium and Intermediary Balance Sheet Quantities”, Federal Reserve Bank of New York Staff Reports, no 428, January.