Question of the Week

Question: Are we required to provide copies of cancelled checks?

Answer: Yes. 

UCC 4-406 states that if you provide a statement showing payments of items on the account, you either return or make available to the member the items paid or provide information in the statement of account sufficient to allow the member reasonably to identify the items paid. Furthermore, If the items are not returned to the member, the person retaining the items shall either retain the items or, if the items are destroyed, maintain the capacity to furnish legible copies of the items until the expiration of seven (7) years after receipt of the items. A member may request an item from the bank that paid the item, and that bank must provide in a reasonable time either the item or, if the item has been destroyed or is not otherwise obtainable, a legible copy of the item.

This is found in the Texas Business and Commerce Code 4.406, the Oklahoma Statutes 12A O.S. 4-406, and Arkansas Statutes 4-4-406.

One little wrinkle is that the Texas version grants a few additional rights, such as a requirement to provide a phone number to request copies and to provide copies of at least two items or a legible copy of the items at no cost.