Check 21 refers to the Check Clearing for the 21st Century Act, which became effective in the United States in 2004. It was enacted to facilitate more efficient check processing and clearing by allowing financial institutions to process checks electronically.
Check fraud can be defined as using paper or electronic checks to obtain money illegally and can occur at any step in the user journey or from any deposit channel.
This type of fraud involves two accounts from different financial institutions. Here the account owner writes a check from one account and deposits it into the other account so as to inflate the balance and then withdraw the funds.
With Check washing, checks are washed with chemicals to erase the information and populated with new information.
Cold storage in banking provides a snapshot of each day’s activity at a financial institution. Cold storage houses a variety of reports, statements, notices, and images generated by a bank’s core system as part of its nightly processing.
Collateral is something of value that a borrower pledges at a bank’s or credit union's request to mitigate the financial institution’s risk in the event of nonpayment.
Collateral imaging involves the use of technology to scan, save, and organize collateral-related documents.
Collateral inspection is a process performed by financial institutions to confirm the value of the collateral used as security in loans.
Collateral perfection is a process that financial institutions go through to protect their ability to take ownership of collateral in the event of default. Maintaining proper documentation and ongoing tracking procedures are key steps for perfecting collateral.
Commercial credit analysis helps financial institutions properly assess commercial borrowers’ creditworthiness.
Commercial credit analysis ratios are used by underwriters in business loan determinations.
Commercial lender reports provide lenders with important information about a variety of topics, especially with regard to existing relationships and potential lending opportunities.