Truncate Law and Legal Definition

According to 12 USCS § 5002 (18) [Title 12. Banks and Banking; Chapter 50. Check Truncation] the term truncate means “to remove an original paper check from the check collection or return process and send to a recipient, in lieu of such original paper check, a substitute check or, by agreement, information relating to the original check (including data taken from the MICR line of the original check or an electronic image of the original check), whether with or without subsequent delivery of the original paper check.”