§ 19-2-506 - Digital images or copies of documentation. - Arkansas Statutes

19-2-506. Digital images or copies of documentation.

(a) Agreement. After a financial institution has received written notification from the Division of Legislative Audit that the submitted samples of its imaged documents or digital media comply with the provisions of this subchapter and upon agreement with the public entity, the financial institution may provide public entities canceled check images in the media type and quality approved by the Division of Legislative Audit.

(b) Complete image. The canceled check copies or the digital images of financial transactions provided to the public entity by the financial institutions must be legible and show both the front and back images of the canceled checks.

(c) Digital images. (1) If a financial institution provides the canceled check images on digital media, the images shall be provided on a read-only CD-ROM or other agreed upon digital media that would provide a permanent and tamper-proof record.

(2) If particular software is needed to view or search the digital images, the financial institution shall provide such software to the public entity and, upon request, to the Division of Legislative Audit. When using the appropriate software, the canceled check images must be clear and readable.

(3) Before delivery of the CD-ROM or other digital media to the public entity, the financial institution shall perform random verification of the legibility of the contents of the data. The financial institution shall submit a letter or other method approved by the Division of Legislative Audit acknowledging verification of the contents, along with the CD-ROM or other digital media, to the public entity.

(4) The financial institution may also provide a duplicate copy of the check images on digital media, conforming to the specifications provided in this subchapter, to the Division of Legislative Audit on a monthly basis.

(d) Paper images. If a financial institution provides the canceled check images on paper, the images must be of such clarity and size that the details may be read without the aid of a magnifying device. The financial institution must be able to, and, at the request of the Division of Legislative Audit, must provide duplicate copies of any checks and statements delivered to a public entity with the same clarity and size as the imaged documents previously delivered.

(e) Authentication of paper images. (1) If the financial institution provides canceled check images on paper, the financial institution shall implement one (1) of the following procedures to provide verification of the authenticity of the records retained by the public entity:

(A) A duplicate copy of the check images on paper and statements mailed to the Division of Legislative Audit on a monthly basis;

(B) The use of an identifying mark unique to the financial institution on the paper images of checks sent to the public entity;

(C) The delivery of a duplicate copy of the check images on digital media, conforming to the digital imaging specifications set forth in this subchapter, to the Division of Legislative Audit on a monthly basis; or

(D) Any other authenticating method approved by the Division of Legislative Audit.

(2) The financial institution is authorized to elect which of the foregoing procedures it shall implement to provide authentication of paper images relating to the accounts of each public entity. Upon reasonable notice to the Division of Legislative Audit and the public entity, the financial institution may elect to implement one (1) of the other authentication procedures or elect to provide images on digital media as set forth in this subchapter.