[Federal Register: December 19, 2005 (Volume 70, Number 242)]
[Rules and Regulations]
[Page 74998-75000]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19de05-3]
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FEDERAL RESERVE SYSTEM
12 CFR Part 229
[Regulation CC; Docket No. R-1244]
Availability of Funds and Collection of Checks
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule; technical amendment.
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SUMMARY: The Board of Governors is amending appendix A of Regulation CC
to delete the reference to the New Orleans branch office of the Federal
Reserve Bank of Atlanta and reassign the Federal Reserve routing
symbols currently listed under that office to the head office of the
Federal Reserve Bank of Atlanta, and to correct typographical errors in
the routing symbols listed under the Helena branch office of the
Federal Reserve Bank of Minneapolis. The Board also is providing notice
that the previously announced transfer of the Nashville branch office's
check-processing operations to the Atlanta head office will be delayed
until 2007. Finally, the Board is providing advance notice concerning
future appendix A changes affecting the Federal Reserve Bank of New
York and the Federal Reserve Bank of Philadelphia.
DATES: The amendment to appendix A under the Ninth Federal Reserve
District (Federal Reserve Bank of Minneapolis) is effective December
19, 2005. The amendment to appendix A under the Sixth Federal Reserve
District (Federal Reserve Bank of Atlanta) is effective on March 31,
2006.
FOR FURTHER INFORMATION CONTACT: Jack K. Walton II, Associate Director
(202/452-2660), or Joseph P. Baressi, Senior Financial Services Analyst
(202/452-3959), Division of Reserve Bank
[[Page 74999]]
Operations and Payment Systems; or Adrianne G. Threatt, Counsel (202/
452-3554), Legal Division. For users of Telecommunications Devices for
the Deaf (TDD) only, contact 202/263-4869.
SUPPLEMENTARY INFORMATION:
Background
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 drawn on a bank is considered local if it
is payable by or at a bank located in the same Federal Reserve check
processing region as the depositary bank. A check drawn on a nonbank is
considered local if it is payable through a bank located in the same
Federal Reserve check processing region as the depositary bank. Checks
that do not meet the requirements for ``local'' checks are considered
``nonlocal.''
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\1\ For purposes of Regulation CC, the term ``bank'' refers to
any depository institution, including commercial banks, savings
institutions, and credit unions.
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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.
Final Amendments to Appendix A
In the aftermath of Hurricane Katrina, the Federal Reserve Bank of
Atlanta implemented its contingency operations plan, which included
sending checks that normally would be processed by the New Orleans
branch office instead to the Atlanta head office on a temporary basis.
On December 5, 2005, the Federal Reserve Banks announced that banks
with routing symbols currently assigned to the New Orleans branch
office for check processing purposes would be reassigned to the Atlanta
head office and that the New Orleans branch permanently would cease its
check processing operations, effective March 31, 2006.\2\ As a result,
some checks that are drawn on and deposited at banks located in the
affected 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 associated with the Federal Reserve Bank of Atlanta to
reflect the transfer of check-processing operations from the Reserve
Bank's New Orleans branch office to its head office in Atlanta. To
coincide with the effective date of the underlying check processing
changes, these amendments are effective March 31, 2006. The Board is
providing advance notice of these amendments to give affected banks
ample time to make any needed processing changes. The advance 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.\3\
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\2\ The Reserve Banks' press release is available at http://www.frbservices.
org/Retail/pdf/PRNewOrleans PressRelease120505.pdf.
\3\ 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.
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The Reserve Banks had previously announced on August 2, 2004, that
the check-processing operations of the Atlanta Reserve Bank's Nashville
branch office would be transferred to the Atlanta Reserve Bank's head
office by early 2006.\4\ However, because of the permanent transfer of
the New Orleans branch office's check-processing operations to the
Atlanta head office, the transfer of the Nashville branch office's
check-processing operations to the Atlanta head office will be delayed
until 2007.
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\4\ See 69 FR 57837, September 28, 2004.
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The Board also is making technical amendments to the list of
routing symbols associated with the Helena branch office of the Federal
Reserve Bank of Minnesota to correct typographical errors in the list.
The lists of Federal Reserve routing symbols assigned to all other
Federal Reserve branches and offices will remain the same at this time.
Information About Future Changes to Appendix A
As the Federal Reserve Banks announced on May 25, 2005,\5\ in
response to the continued nationwide decline in check usage and to
position themselves more effectively to meet the cost recovery
requirements of the Monetary Control Act of 1980, the Reserve Banks
have decided to stop processing checks at the East Rutherford office of
the Federal Reserve Bank of New York. Checks currently processed by
that office instead will be processed at the head office of the Federal
Reserve Bank of Philadelphia. Although an exact date for this
restructuring has not been determined, it is expected to take place in
the latter half of 2006.
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\5\ The Reserve Banks' press release is available at http://www.frbservices.org/
Retail/pdf/May2005FRBanks AnnounceChanges
IncreaseEfficiency.pdf.
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The Board intends to publish amendments to appendix A in connection
with this restructuring to delete the reference to the East Rutherford
office of the Federal Reserve Bank of New York and transfer the
affected Federal Reserve routing symbols to the head office of the
Federal Reserve Bank of Philadelphia at least 60 days prior to the
effective date of the restructuring. This should give affected banks
ample time to make appropriate programming changes and, if necessary,
to amend their availability schedules and related disclosures and
provide their customers with notice of any changes to their
availability schedules. However, some affected banks might prefer to
make or to plan for their necessary programming and availability
changes prior to the effective dates of the relevant amendments. For
the information and planning needs of affected banks, the Board today
is providing advance notice that, as of the effective date of this
restructuring, banks with the following Federal Reserve routing symbols
will be local to the Philadelphia head office:
0210 2210
0212 2212
0214 2214
0215 2215
0216 2216
0219 2219
0260 2260
0280 2280
0310 2310
0311 2311
0312 2312
0313 2313
0319 2319
0360 2360
The Federal Reserve routing symbols assigned to all other Federal
Reserve branches and offices will be unaffected by this restructuring.
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. All the revisions to the appendix are
technical in nature, and the routing symbol revisions for the
[[Page 75000]]
Sixth District are required by the statutory and regulatory definitions
of ``check-processing region.'' Because there is no substantive change
on which to seek public input and because delaying the amendments may
impede affected banks' ability to comply with Regulation CC, the Board
has determined that the Sec. 553(b) notice and comment procedures are
unnecessary.
Regulatory Flexibility Act Certification
Pursuant to section 605(b) of the Regulatory Flexibility Act (5
U.S.C. 605(b)), the Board certifies that the final rule will not have a
significantly adverse economic impact on a substantial number of small
entities. These amendments are technical, and the routing number
changes are required by law. Moreover, these amendments apply to all
banks regardless of their size. Many small banks generally provide
next-day availability for all checks and will not be affected by this
amendment. For the subset of small banks that does distinguish between
checks subject to next-day availability and those subject to longer
holds, the final rule should necessitate only minimal programming
changes. Some of these affected banks might also have to modify their
funds availability disclosures and notify both new and existing
customers of the modified funds availability schedules.
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. This technical amendment to appendix A of Regulation CC
will delete the reference to the New Orleans branch 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
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. The Board is
also correcting typographical errors in the routing symbol list under
the Helena branch office of the Federal Reserve Bank of Minnesota. The
Board anticipates that these corrections will not impose any burden.
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 Sixth and Ninth 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
* * * * *
Sixth Federal Reserve District
[Federal Reserve Bank of Atlanta]
Head Office
0610 2610
0611 2611
0612 2612
0613 2613
0620 2620
0621 2621
0622 2622
0650 2650
0651 2651
0652 2652
0653 2653
0654 2654
0655 2655
Jacksonville Branch
0630 2630
0631 2631
0632 2632
0660 2660
0670 2670
Nashville Branch
0640 2640
0641 2641
0642 2642
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* * * * *
Ninth Federal Reserve District
[Federal Reserve Bank of Minneapolis]
Head Office
0910 2910
0911 2911
0912 2912
0913 2913
0914 2914
0915 2915
0918 2918
0919 2919
0960 2960
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Helena Branch
0920 2920
0921 2921
0929 2929
* * * * *
By order of the Board of Governors of the Federal Reserve
System, acting through the Secretary of the Board under delegated
authority, December 13, 2005.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E5-7462 Filed 12-16-05; 8:45 am]
BILLING CODE 6210-01-P