Collection of Checks and Funds Availability

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Federal Register: February 20, 2009 (Volume 74, Number 33)

Rules and Regulations

Page 7785-7786

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

DOCID:fr20fe09-5

FEDERAL RESERVE SYSTEM 12 CFR Part 229

Regulation CC; Docket No. R-1352

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 Baltimore branch office of the Federal

Reserve Bank of Richmond and to reassign the Federal Reserve routing symbols currently listed under that office to the head office of the

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

System.

DATES: The final rule will become effective on April 18, 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 Sophia H. Allison, Senior Counsel

(202/452-3565), 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 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 April 18, 2009, the Reserve Banks will transfer the check- processing operations of the Baltimore branch office of the Federal

Reserve Bank of Richmond to the head office of the Federal Reserve Bank of Philadelphia. As a result of this change, some checks that are drawn on and deposited at banks located in the Baltimore and Philadelphia 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 list of routing symbols in appendix A associated with the Federal Reserve Banks of

Richmond and Philadelphia to reflect the transfer of check-processing operations from the Baltimore branch office of the Federal Reserve Bank of Richmond to the head office of the Federal Reserve Bank of

Philadelphia. To coincide with the effective date of the underlying check-processing changes, the amendments to appendix A are effective

April 18, 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

Page 7786

region.'' Because there is no substantive change on which to seek public input, the Board has determined that the Sec. 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 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 amendment to appendix A of Regulation CC will delete the reference to the Baltimore branch office of the Federal

Reserve Bank of Richmond and reassign the routing symbols listed under that office to the head office of the Federal Reserve Bank of

Philadelphia. 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 Third and Fifth Federal Reserve District routing symbol lists in appendix A are amended by removing the headings and listings for the

Fifth Federal Reserve District and revising the listings for the Third

Federal Reserve District to read as follows:

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

Checks and Local Checks

\1\ The first two digits identify the bank's Federal Reserve

District. For example, 01 identifies the First Federal Reserve

District (Boston), and 12 identifies the Twelfth District (San

Francisco). Adding 2 to the first digit denotes a thrift institution. For example, 21 identifies a thrift in the First

District, and 32 denotes a thrift in the Twelfth District.

* * * * *

Third Federal Reserve District

Federal Reserve Bank of Philadelphia

Head Office 0110 \1\

2110 0111

2111 0112

2112 0113

2113 0114

2114 0115

2115 0116

2116 0117

2117 0118

2118 0119

2119 0210

2210 0211

2211 0212

2212 0213

2213 0214

2214 0215

2215 0216

2216 0219

2219 0260

2260 0280

2280 0310

2310 0311

2311 0312

2312 0313

2313 0319

2319 0360

2360 0510

2510 0514

2514 0520

2520 0521

2521 0522

2522 0540

2540 0550

2550 0560

2560 0570

2570

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By order of the Board of Governors of the Federal Reserve

System, February 13, 2009.

Jennifer J. Johnson,

Secretary of the Board.

FR Doc. E9-3547 Filed 2-19-09; 8:45 am

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