Availability of Funds and Collection of Checks

Federal Register: January 28, 2009 (Volume 74, Number 17)

Rules and Regulations

Page 4909-4910

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

DOCID:fr28ja09-1

Rules and Regulations

Federal Register

This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510.

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Page 4909

FEDERAL RESERVE SYSTEM 12 CFR Part 229

Regulation CC; Docket No. R-1348; 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 Charlotte 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 Atlanta. These amendments reflect the restructuring of check-processing operations within the Federal Reserve

System.

DATES: The final rule will become effective on March 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 March 21, 2009, the Reserve Banks will transfer the check- processing operations of the Charlotte branch office of the Federal

Reserve Bank of Richmond 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 Charlotte 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 Richmond and

Atlanta to reflect the transfer of check-processing operations from the

Charlotte branch office of the Federal Reserve Bank of Richmond 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 March 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 Charlotte 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 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.

Page 4910

Authority and Issuance 0

For the reasons set forth in the preamble, the Board is amending 12 CFR part 229 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 Fifth and Sixth Federal Reserve District routing symbol lists in appendix A are revised to read as follows:

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

Checks and Local Checks

* * * * *

FIFTH FEDERAL RESERVE DISTRICT

Federal Reserve Bank of Richmond

Baltimore Branch 0510

2510 0514

2514 0520

2520 0521

2521 0522

2522 0540

2540 0550

2550 0560

2560 0570

2570

SIXTH FEDERAL RESERVE DISTRICT

Federal Reserve Bank of Atlanta

Head Office 0530

2530 0531

2531 0532

2532 0539

2539 0610

2610 0611

2611 0612

2612 0613

2613 0620

2620 0621

2621 0622

2622 0630

2630 0631

2631 0632

2632 0640

2640 0641

2641 0642

2642 0650

2650 0651

2651 0652

2652 0653

2653 0654

2654 0655

2655 0660

2660 0670

2670 0810

2810 0812

2812 0815

2815 0819

2819 0820

2820 0829

2829 0840

2840 0841

2841 0842

2842 0843

2843 0865

2865

* * * * *

By order of the Board of Governors of the Federal Reserve

System, January 16, 2009.

Jennifer J. Johnson,

Secretary of the Board.

FR Doc. E9-1421 Filed 1-27-09; 8:45 am

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