Answer:
by Brian Crow:
A remotely created check will not bear the maker's signature. Instead there will be some reference to "Check verbally authorized by your depositor" or other similar language. The Reg CC update does not change what a remotely created check is as these have been around for several years. What is changing is that a remotely created check that is converted to an electronically created item carries the same presentment warranties as a paper remotely created check does.
Answer:
by John Burnett:
Actually, the electronically created item (ECI) is one that was never in paper form but, because of image processing, it's image will look virtually identical to an image of a check. Because they were never checks, some of the Regulation CC (and UCC) provisions could not apply to them. Under the new rules, there is a definition added, along with a new indemnity (in new section 229.34(g)) given by a bank that transfers or presents such an item to each transferee bank, subsequent collecting banks, the paying bank, and any subsequent returning bank against losses because
(1) the electronic image or electronic information isn't derived from a paper check
(2) the person on whose account the ECI is drawn on didn't authorize the issuance of the item in the amount stated on the item or to the payee stated on the item, or
(3) a person received a transfer, presentment, or return of, or otherwise is charged for an ECI such that the person is asked to make payment based on an item or check it has already paid.
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