Availability of Funds and Collection of Checks

Text

---

Federal Register: June 3, 2009 (Volume 74, Number 105)

Rules and Regulations

Page 26515-26516

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

DOCID:fr03jn09-3

FEDERAL RESERVE SYSTEM 12 CFR Part 229

Regulation CC; Docket No. R-1358

Availability of Funds and Collection of Checks

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule; technical amendment.

SUMMARY: The Board of Governors (Board) is amending the routing number guide to next-day availability checks and local checks in Regulation CC to delete the reference to the head office of the Federal Reserve Bank of Minneapolis and to reassign the Federal Reserve routing symbols currently listed under that office to the head office of the Federal

Reserve Bank of Cleveland. These amendments reflect the restructuring of check-processing operations within the Federal Reserve System.

DATES: The final rule will become effective on July 25, 2009.

FOR FURTHER INFORMATION CONTACT: Jeffrey S. H. Yeganeh, Financial

Services Manager (202/728-5801), or Joseph P. Baressi, Financial

Services Project Leader (202/452-3959), Division of Reserve Bank

Operations and Payment Systems; or Dena L. Milligan, Attorney (202/452- 3900), Legal Division. For users of Telecommunications Devices for the

Deaf (TDD) only, contact 202/263-4869.

SUPPLEMENTARY INFORMATION: Regulation CC establishes the maximum period a depositary bank may wait between receiving a deposit and making the deposited funds available for withdrawal.\1\ A depositary bank

Page 26516

generally must provide faster availability for funds deposited by a

``local check'' than by a ``nonlocal check.'' A check is considered local if it is payable by or at or through a bank located in the same

Federal Reserve check-processing region as the depositary bank.

\1\ For purposes of Regulation CC, the term ``bank'' refers to any depository institution, including commercial banks, savings institutions, and credit unions.

Appendix A to Regulation CC contains a routing number guide that assists banks in identifying local and nonlocal banks and thereby determining the maximum permissible hold periods for most deposited checks. The appendix includes a list of each Federal Reserve check- processing office and the first four digits of the routing number, known as the Federal Reserve routing symbol, of each bank that is served by that office for check-processing purposes. Banks whose

Federal Reserve routing symbols are grouped under the same office are in the same check-processing region and thus are local to one another.

On July 25, 2009, the Reserve Banks will transfer the check- processing operations of the head office of the Federal Reserve Bank of

Minneapolis to the head office of the Federal Reserve Bank of

Cleveland. As a result of this change, some checks that are drawn on and deposited at banks located in the Minneapolis and Cleveland check- processing regions and that currently are nonlocal checks will become local checks subject to faster availability schedules. To assist banks in identifying local and nonlocal checks and making funds availability decisions, the Board is amending the lists of routing symbols in appendix A associated with the Federal Reserve Banks of Minneapolis and

Cleveland to reflect the transfer of check-processing operations from the head office of the Federal Reserve Bank of Minneapolis to the head office of the Federal Reserve Bank of Cleveland. To coincide with the effective date of the underlying check-processing changes, the amendments to appendix A are effective July 25, 2009. The Board is providing notice of the amendments at this time to give affected banks ample time to make any needed processing changes. Early notice also will enable affected banks to amend their availability schedules and related disclosures if necessary and provide their customers with notice of these changes.\2\

\2\ Section 229.18(e) of Regulation CC requires that banks notify account holders who are consumers within 30 days after implementing a change that improves the availability of funds.

Administrative Procedure Act

The Board has not followed the provisions of 5 U.S.C. 553(b) relating to notice and public participation in connection with the adoption of the final rule. The revisions to appendix A are technical in nature and are required by the statutory and regulatory definitions of ``check-processing region.'' Because there is no substantive change on which to seek public input, the Board has determined that the section 553(b) notice and comment procedures are unnecessary. In addition, the underlying consolidation of Federal Reserve Bank check- processing offices involves a matter relating to agency management, which is exempt from notice and comment procedures.

Paperwork Reduction Act

In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3506; 5 CFR part 1320 Appendix A.1), the Board has reviewed the final rule under authority delegated to the Board by the Office of Management and Budget. The technical amendments to appendix A of Regulation CC will delete the reference to the head office of the Federal Reserve

Bank of Minneapolis and reassign the routing symbols listed under that office to the head office of the Federal Reserve Bank of Cleveland. The depository institutions that are located in the affected check- processing regions and that include the routing numbers in their disclosure statements would be required to notify customers of the resulting change in availability under Sec. 229.18(e). However, all paperwork collection procedures associated with Regulation CC already are in place, and the Board accordingly anticipates that no additional burden will be imposed as a result of this rulemaking.

List of Subjects in 12 CFR Part 229

Banks, Banking, Reporting and recordkeeping requirements.

Authority and Issuance 0

For the reasons set forth in the preamble, the Board is amending 12 CFR part 229 to read as follows:

PART 229--AVAILABILITY OF FUNDS AND COLLECTION OF CHECKS

(REGULATION CC) 0 1. The authority citation for part 229 continues to read as follows:

Authority: 12 U.S.C. 4001-4010, 12 U.S.C. 5001-5018. 0 2. The Fourth and Ninth District routing symbol lists in appendix A are amended by removing the headings and listings for the Ninth Federal

Reserve District and revising the listings for the Fourth Federal

Reserve Districts to read as follows:

Appendix A to Part 229--Routing Number Guide to Next-Day Availability

Checks and Local Checks

* * * * *

Fourth Federal Reserve District

Federal Reserve Bank of Cleveland

Head Office 0220

2220 0223

2223 0410

2410 0412

2412 0420

2420 0421

2421 0422

2422 0423

2423 0430

2430 0432

2432 0433

2433 0434

2434 0440

2440 0441

2441 0442

2442 0515

2515 0519

2519 0720

2720 0724

2724 0740

2740 0749

2749 0813

2813 0830

2830 0839

2839 0863

2863 0910

2910 0911

2911 0912

2912 0913

2913 0914

2914 0915

2915 0918

2918 0919

2919 0960

2960

* * * * *

By order of the Board of Governors of the Federal Reserve

System, May 27, 2009.

Robert deV. Frierson,

Deputy Secretary of the Board.

FR Doc. E9-12925 Filed 6-2-09; 8:45 am

BILLING CODE 6210-01-P

---