To our customers:

As part of our commitment to always offer you the best service and keep you informed, we want to let you know that beginning July 1st, 2007 financial institutions belonging to the “Puerto Rico Clearing House” will start to exchange checks electronically. In order to follow this agreement we will turn checks into images before processing them. This change in check processing complies with the Federal Law known as Check 21 and with Regulation CC. This change will eliminate the need to handle paper objects, since they will be exchanged electronically. Once this change is in effect, the way you receive your cancelled checks will also change.

You will begin to receive a copy of the checks cashed by other institutions in your account statement. This image, known as substitute check, consists of a copy of the front and back of the original check, and it will include the text that identifies it as a legal copy of the original check. The front of the substitute check should state: "This is a legal copy of your check.” You can use it the same way you would use the original check, since it is equally valid. Below you may see what a substitute check looks like.

Front copy of the substitute check

Back copy of the substitute check

This image conversion process will eliminate paper checks in those instances where checks are drawn or cashed in other institutions. Therefore, in your account statement you may receive a combination of original checks and copies of checks.

For your convenience, we offer you ChequeRegistro_sm. Through this Free service the process of verifying cancelled checks when receiving your account statement will be much simpler. ChequeRegistro_sm will allow you to see all cancelled checks ordered by check number. Also, you will receive 1,000 PREMIA¹_® points if you sign up to this service on or before July 1st, 2007. To join ChequeRegistrosm, call TeleBanco Popular_® at (787)724-3650 or 1-888-724-3650 (United States / Virgin Islands) or visit any of our branches.

Remember, we are here to serve you.

¹ Subject to Terms and Conditions of the PREMIA® program. Not available in the Virgin Islands.