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THE HUNTINGTON NATIONAL BANK TO OFFER NATIONAL CHECK CLEARINGHOUSE

 THE HUNTINGTON NATIONAL BANK
 TO OFFER NATIONAL CHECK CLEARINGHOUSE
 COLUMBUS, Ohio, April 28 /PRNewswire/ -- The Huntington National Bank has received approval from the Federal Reserve Board to form the country's first national check clearinghouse. The National Clearinghouse, which is being developed by the Check Exchange System (CHEXS), will be launched in a testing phase June 1 and is expected to begin full production nationwide during the fourth quarter of this year. The Huntington has applied to the Office of the Comptroller of the Currency for approval to participate in the CHEXS partnership.
 The National Clearinghouse Association will be a non-profit corporation patterned after the structure used by many local clearinghouses. As an organization of banks who send and receive checks across the country, the Clearinghouse will reduce the cost of check collection through direct bank to bank presentments with net settlement through the Federal Reserve.
 All members will belong to local clearinghouses within their respective cities. Bank members who send checks will be able to economically clear them through all the members of local clearinghouses via a single cash letter to each city. Bank members who receive checks will accept cash letters from other members and sort and present the items to their local clearinghouses.
 CHEXS is a partnership to be owned and operated by The Huntington National Bank, U.S. Check and LIttlewood, Shain & Co. through their subsidiaries. U.S. Check is an air-courier company based in Columbus. Littlewood, Shain is a management consulting and software firm headquartered in Exton, Pa. The Huntington is majority owner and is under contract to CHEXS to provide operational services through its affiliate, The Huntington Service Company.
 The Federal Reserve will provide national net settlement services for the Clearinghouse so that incoming and outgoing work in all cities can be settled with just one single daily debit or credit per member.
 "This settlement method means that members have the opportunity to save thousands of dollars by eliminating costly wire charges, account maintenance fees, balance reporting costs and more," said Rick Sellers, president of The Huntington Service Company in Columbus.
 "One of the keys to successfully managing and controlling the flow of cash letters over large geographic distances is the on-line system which can be accessed by members nationwide," said Terry Geer, senior vice president with The Huntington Service Company. "The system enables members to track the status of all cash letters at any time and learn what has been sent, what has been received and their bank's net position.
 "Banks on average pay about three cents per item for check processing services," Geer said. "We're projecting to save member banks from one cent to one-and-a-half cents per item. This can be a significant savings."
 National Clearinghouse membership will enable banks to:
 - Reduce clearing costs by eliminating Federal Reserve and/or correspondent bank check clearing charges without adding transportation expenses.
 - Enhance their competitive advantage by providing low-cost clearing services across the country.
 - Improve their position management by combining national net settlement into a single daily accounting entry.
 - Strengthen check processing service quality by providing standardized procedures for cash letter preparation, adjustments, returns and more.
 - Establish a self-governing body through which members can participate in a growing private sector check clearing organization.
 The Huntington National Bank is a principal subsidiary of Huntington Bancshares Incorporated (NASDAQ: HBAN), a $12.3 billion regional bank holding company headquartered in Columbus.. The company's banking subsidiaries operate 267 offices in Ohio, Florida, Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia. In addition, the company's trust, mortgage, investment banking and automobile finance subsidiaries manage 48 offices in the seven states mentioned as well as Connecticut, Delaware, Illinois, Maryland, Massachusetts, New Jersey, Rhode Island, and Virginia.
 -0- 4/28/92
 /CONTACT: Paula Jurcenko of Huntington Bancshares Incorporated, 614-463-4588/
 (HBAN) CO: Huntington Bancshares Incorporated ST: Ohio IN: FIN SU:


CG -- CL015 -- 3857 04/28/92 13:24 EDT
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Publication:PR Newswire
Date:Apr 28, 1992
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