Check 21 Law Slow To TakeHold
WASHINGTON - (03/01/05) -- Federal Reserve Gov. Mark Olson saidbanks and credit unions have been slow to implement the new Check21 law, which gives electric transactions the same legal authorityas paper checks. Olson told attendees of CUNA's Government AffairsConference that the new law hasn't led to as quick of an adoptionof electronic technology as had been expected. "It's been 18 monthssince passage of Check 21 and six months since its implementation,and it is clear that the goals of Check 21 are still valid," Olsontold the credit union faithful. "It's clear there's been anincreased investment in technology to speed up the process and it'salso clear the process is moving much more slowly than it wasthought it would happen." Even so, Olson expects to seeimplementation to continue to increase over time. Olson also saidthe economy should continue to expand at a solid pace, and addedinflation and inflationary expectations appear to bewell-contained.