Availability of Funds and Collection of Checks
Federal Register: December 19, 2008 (Volume 73, Number 245)
Rules and Regulations
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
FEDERAL RESERVE SYSTEM 12 CFR Part 229
Regulation CC; Docket No. R-1344
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 St. Louis and to reassign the Federal Reserve routing symbols currently listed under that office to the head office of the Federal
Reserve Bank of Atlanta. These amendments reflect the restructuring of check-processing operations within the Federal Reserve System.
DATES: The final rule will become effective on February 21, 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 February 21, 2009, the Reserve Banks will transfer the check- processing operations of the head office of the Federal Reserve Bank of
St. Louis to the head office of the Federal Reserve Bank of Atlanta. As a result of this change, some checks that are drawn on and deposited at banks located in the St. Louis and Atlanta 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 St. Louis and Atlanta to reflect the transfer of check-processing operations from the head office of the
Federal Reserve Bank of St. Louis to the head office of the Federal
Reserve Bank of Atlanta. To coincide with the effective date of the underlying check-processing changes, the amendments to appendix A are effective February 21, 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 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 head office of the Federal Reserve Bank of
St. Louis and reassign the routing symbols listed under that office to the head office of the Federal Reserve Bank of Atlanta. 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:
Eighth Federal Reserve District and revising the listings for the Sixth
Federal Reserve District to read as follows:
Appendix A to Part 229--Routing Number Guide to Next-Day Availability
Checks and Local Checks
* * * * *
Sixth Federal Reserve District
Federal Reserve Bank of Atlanta
Head office 0610
* * * * *
By order of the Board of Governors of the Federal Reserve
System, December 15, 2008.
Jennifer J. Johnson,
Secretary of the Board.
FR Doc. E8-30085 Filed 12-18-08; 8:45 am
BILLING CODE 6210-01-P