Bush signs check truncation bill Oct. 29, 2003—President Bush yesterday signed into law the NAFCU-backed check truncation bill, H.R. 1474, known as The Check Clearing for the 21st Century Act. Final language for the bill was worked out by House and Senate conferees earlier this month and approved by both houses of Congress. NAFCU President Fred Becker has lauded the act—nicknamed Check 21—as a tremendous cost-cutting tool for financial institutions that will allow credit unions to pass savings along to members. The law will become effective 12 months from yesterday, on October 28, 2004. Financial institutions will realize savings primarily from the elimination of handling, sorting and physically transporting checks to the financial institution. Although credit unions have "truncated" share drafts since 1974, H.R. 1474 would allow truncation earlier in the process and provide credit union members with even greater savings and protection against fraud.