Customer Notifications:
Check 21

Today, when you write a paper check, the physical check is transported from bank to bank until it is returned to your bank. Some banks return original checks to their customers along with their monthly statements. At PlainsCapital Bank, we return check images to our customers, a service we began in 1995.

Check 21 (short for The Check Clearing Act for the 21st Century) is a new federal law that becomes effective on October 28, 2004. Check 21 allows financial institutions to convert original checks into electronic images or "substitute checks." A substitute check is the legal equivalent of the original check. Rather than exchanging paper checks, many banks, including PlainsCapital Bank, will now exchange checks electronically.

Because PlainsCapital Bank converted to digital imaging in 1995, we're taking the lead in implementing Check 21. This is just one additional way we're able to deliver the latest in banking technology to our customers.

How does Check 21 impact me?

• You will continue to use paper checks and accept paper checks as normal.
• You will continue to receive check images with your monthly statement.
• Your check images will continue to be available online if you are an Internet banking customer.
• You may receive a combination of original and substitute check images with your bank statement.
• Over time, your checks will clear faster as more banks convert to substitute checks and check "float" time decreases.

How does Check 21 impact check float?

Because Check 21 allows for the electronic exchange of substitute checks, your checks may clear the bank more quickly. Customers who rely on float to maintain balances will need to monitor their accounts closely to avoid being overdrawn. Float time will continue to decrease as more banks convert to digital technology and begin exchanging substitute checks.