75 FR 2 pgs. 219-221 - Availability of Funds and Collection of Checks
Type: RULEVolume: 75Number: 2Pages: 219 - 221
Docket number: [Regulation CC; Docket No. R-1382]
FR document: [FR Doc. E9-31254 Filed 1-4-10; 8:45 am]
Agency: Federal Reserve System
Official PDF Version: PDF Version
FEDERAL RESERVE SYSTEM
12 CFR Part 229
[Regulation CC; Docket No. R-1382]
Availability of Funds and Collection of Checks
AGENCY:
Board of Governors of the Federal Reserve System.
ACTION:
Final rule.
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 Atlanta 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. Subsequent to these amendments, there will only be a single check-processing region for purposes of Regulation CC and there will no longer be any checks that are nonlocal.
DATES:
The final rule will become effective on February 27, 2010.
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.1A 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.
Footnotes:
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 27, 2010, the Reserve Banks will transfer the check-processing operations of the head office of the Federal Reserve Bank of Atlanta 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 Atlanta 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 Atlanta and Cleveland to reflect the transfer of check-processing operations from the head office of the Federal Reserve Bank of Atlanta 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 February 27, 2010. At that time, there will only be a single check-processing region for purposes of Regulation CC and there will no longer be any checks that are nonlocal. 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
Footnotes:
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 public comment requirements of section 553(b) of the Administrative Procedure Act do not apply to these amendments to Appendix A of Regulation CC because the amendments involve matters of agency organization. The Monetary Control Act requires cost recovery for Federal Reserve Bank priced services over the long term, which from time to time necessitates changes in the internal organization of Reserve Bank services in order to meet the statutory mandate. The rapid decline in paper check volumes, generally, and the decline in paper checks sent to the Reserve Banks for collection have significantly reduced the need for Federal Reserve check-processing locations and the ability of Reserve Banks to recover the costs of maintaining those locations. In order to achieve the Monetary Control Act requirement of long-run full cost recovery, the Reserve Banks have adjusted their check service infrastructure to reduce the number of check-processing regions. In light of the fact that the Reserve Banks are receiving a high percentage of checks electronically, the consolidation of check-processing centers is required in order to meet the mandate of the Monetary Control Act. As a result of the consolidation of Federal Reserve check-processing offices, amendments to Appendix A are necessary because the statutory and regulatory terms "local" and "nonlocal" are defined in terms of "check-processing regions"-the geographic areas served by a Federal Reserve check-processing office.
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 amendments to appendix A of Regulation CC will delete the reference to the head office of the Federal Reserve Bank of Atlanta 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 § 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
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)
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.
2. In appendix A, the Fourth and Sixth District routing symbol lists are amended by removing the headings and listings for the Sixth 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
| 01101 | 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 |
| 0220 | 2220 |
| 0223 | 2223 |
| 0260 | 2260 |
| 0280 | 2280 |
| 0310 | 2310 |
| 0311 | 2311 |
| 0312 | 2312 |
| 0313 | 2313 |
| 0319 | 2319 |
| 0360 | 2360 |
| 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 |
| 0510 | 2510 |
| 0514 | 2514 |
| 0515 | 2515 |
| 0519 | 2519 |
| 0520 | 2520 |
| 0521 | 2521 |
| 0522 | 2522 |
| 0530 | 2530 |
| 0531 | 2531 |
| 0532 | 2532 |
| 0539 | 2539 |
| 0540 | 2540 |
| 0550 | 2550 |
| 0560 | 2560 |
| 0570 | 2570 |
| 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 |
| 0710 | 2710 |
| 0711 | 2711 |
| 0712 | 2712 |
| 0719 | 2719 |
| 0720 | 2720 |
| 0724 | 2724 |
| 0730 | 2730 |
| 0739 | 2739 |
| 0740 | 2740 |
| 0749 | 2749 |
| 0750 | 2750 |
| 0759 | 2759 |
| 0810 | 2810 |
| 0812 | 2812 |
| 0813 | 2813 |
| 0815 | 2815 |
| 0819 | 2819 |
| 0820 | 2820 |
| 0829 | 2829 |
| 0830 | 2830 |
| 0839 | 2839 |
| 0840 | 2840 |
| 0841 | 2841 |
| 0842 | 2842 |
| 0843 | 2843 |
| 0863 | 2863 |
| 0865 | 2865 |
| 0910 | 2910 |
| 0911 | 2911 |
| 0912 | 2912 |
| 0913 | 2913 |
| 0914 | 2914 |
| 0915 | 2915 |
| 0918 | 2918 |
| 0919 | 2919 |
| 0920 | 2920 |
| 0921 | 2921 |
| 0929 | 2929 |
| 0960 | 2960 |
| 1010 | 3010 |
| 1011 | 3011 |
| 1012 | 3012 |
| 1019 | 3019 |
| 1020 | 3020 |
| 1021 | 3021 |
| 1022 | 3022 |
| 1023 | 3023 |
| 1030 | 3030 |
| 1031 | 3031 |
| 1039 | 3039 |
| 1040 | 3040 |
| 1041 | 3041 |
| 1049 | 3049 |
| 1070 | 3070 |
| 1110 | 3110 |
| 1111 | 3111 |
| 1113 | 3113 |
| 1119 | 3119 |
| 1120 | 3120 |
| 1122 | 3122 |
| 1123 | 3123 |
| 1130 | 3130 |
| 1131 | 3131 |
| 1140 | 3140 |
| 1149 | 3149 |
| 1163 | 3163 |
| 1210 | 3210 |
| 1211 | 3211 |
| 1212 | 3212 |
| 1213 | 3213 |
| 1220 | 3220 |
| 1221 | 3221 |
| 1222 | 3222 |
| 1223 | 3223 |
| 1224 | 3224 |
| 1230 | 3230 |
| 1231 | 3231 |
| 1232 | 3232 |
| 1233 | 3233 |
| 1240 | 3240 |
| 1241 | 3241 |
| 1242 | 3242 |
| 1243 | 3243 |
| 1250 | 3250 |
| 1251 | 3251 |
| 1252 | 3252 |
| 1 The first two digits identify the bank's Federal Reserve District. For example, 01 identifies the First Federal Reserve District (Boston), and l2 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. | |
By order of the Board of Governors of the Federal Reserve System, acting through the Secretary of the Board under delegated authority, December 30, 2009.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E9-31254 Filed 1-4-10; 8:45 am]
BILLING CODE 6210-01-P