CPA Implements New Images of Cheques Rule and Image Security Standard
CPA Rule A10 - Images of Cheques and Standard 012 - Image Security Standard, which establish requirements and technical standards related to image creation and storage, came into effect on June 1, 2010.
The new Rule and Standard have been developed to support "official image" provisions in the Bills of Exchange Act (BEA) and to leverage recent investments in image technology by CPA member financial institutions. An “official image” is defined in the BEA as an image (or a printout) of a bill created by or on behalf of a bank in accordance with CPA by-laws, rules and standards. The BEA provides that an official image may be used for all purposes as though it were the original paper item.
Rule A10 sets out requirements with respect to Canadian and US dollar cheque images that are created post-clearing by a Drawee or its Clearing Agent, and offers the opportunity to enhance the efficiency of current return processes through the use of Image Printouts.
Under the new Rule, items that have been returned for the reason "post dated” may no longer be certified by the Drawee for the purpose of re-clearing. Rule A10 also requires the use of a new stamp, the “Item Dishonoured Stamp” to be applied to items that are being returned for the reason “post dated”. The requirement to use the new stamp is subject to a transition period which will end on August 3, 2010.
Copies of the new Rule and Standard are available at the following links:
More information, including FAQs for CPA Member financial institutions, is available through imagerule@cdnpay.ca.