Availability of Funds and Collection of Checks
Federal Register: July 20, 2009 (Volume 74, Number 137)
Rules and Regulations
Page 35113-35114
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
DOCID:fr20jy09-2
FEDERAL RESERVE SYSTEM 12 CFR Part 229
Regulation CC; Docket No. R-1363
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 Chicago 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 September 12, 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 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 September 12, 2009, the Reserve Banks will transfer the check- processing operations of the head office of the Federal Reserve Bank of
Chicago 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 Chicago 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 Chicago and Cleveland to reflect the transfer of check-processing operations from the head office of the Federal
Reserve Bank of Chicago to the head office of the Federal Reserve Bank of Cleveland. To coincide with the effective date of the underlying check-processing changes,
Page 35114
the amendments to appendix A are effective September 12, 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 amendments to appendix A of Regulation CC will delete the reference to the head office of the Federal Reserve Bank of
Chicago 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 Seventh District routing symbol lists in appendix A are amended by removing the headings and listings for the Seventh
Federal Reserve District and revising the listings for the Fourth
Federal Reserve District 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 0710
2710 0711
2711 0712
2712 0719
2719 0720
2720 0724
2724 0730
2730 0739
2739 0740
2740 0749
2749 0750
2750 0759
2759 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 1040
3040 1041
3041 1049
3049
* * * * *
By order of the Board of Governors of the Federal Reserve
System, acting through the Secretary of the Board under delegated authority, July 14, 2009.
Jennifer J. Johnson,
Secretary of the Board.
FR Doc. E9-17103 Filed 7-17-09; 8:45 am
BILLING CODE 6210-01-P
