[Federal Register Volume 73, Number 139 (Friday, July 18, 2008)]
[Rules and Regulations]
[Pages 41236-41237]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-16481]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 229
[Regulation CC; Docket No. R-1323]
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 appendix A of
Regulation CC to delete the reference to the Windsor Locks office of
the Federal Reserve Bank of Boston and to reassign the Federal Reserve
routing symbols currently listed under that office to the head office
of the Federal Reserve Bank of Philadelphia. These amendments reflect
the restructuring of check-processing operations within the Federal
Reserve System.
DATES: The final rule will become effective on September 20, 2008.
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 September 20, 2008, the Reserve Banks will transfer the check-
processing operations of the Windsor Locks office of the Federal
Reserve Bank of Boston to the head office of the Federal Reserve Bank
of Philadelphia. As a result of this change, some checks that are drawn
on and deposited at banks located in the Windsor Locks and Philadelphia
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
Boston and Philadelphia to reflect the transfer of check-processing
operations from the Windsor Locks office of the Federal Reserve Bank of
Boston to the head office of the Federal Reserve Bank of Philadelphia.
To coincide with the effective date of the underlying check-processing
changes, the amendments to appendix A are effective September 20, 2008.
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 Windsor Locks office of the Federal Reserve
Bank of Boston and reassign the routing symbols listed under that
office to the head office of the Federal Reserve Bank of Philadelphia.
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. In appendix A to part 229, introductory paragraph C is revised and
the First and Third Federal Reserve
[[Page 41237]]
District routing symbol lists are amended by removing the headings and
listings for the First Federal Reserve District and revising the
listings for the Third Federal Reserve District. The revisions read as
follows:
Appendix A to Part 229--Routing Number Guide to Next-Day Availability
Checks and Local Checks
* * * * *
C. Each Federal Reserve check-processing office is listed below,
followed by the Federal Reserve routing symbols of the banks that
are located within the check-processing region served by that
office. Because some check-processing regions cross Federal Reserve
District lines, there are some cases in which banks in different
Federal Reserve Districts are located in the same check-processing
region and therefore considered local to each other. For example,
banks in Fairfield County, Connecticut are located in the Second
District and have Second District routing symbols (0211 or 2211),
but the head office of the Federal Reserve Bank of Philadelphia
processes the checks of these banks. Thus, as indicated below,
checks drawn on banks with 0211 or 2211 routing numbers would be
local for banks served by the head office of the Federal Reserve
Bank of Philadelphia.
Third Federal Reserve District
[Federal Reserve Bank of Philadelphia]
Head Office
------------------------------------------------------------------------
------------------------------------------------------------------------
0110\1\........................................................ 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
0260........................................................... 2260
0280........................................................... 2280
0310........................................................... 2310
0311........................................................... 2311
0312........................................................... 2312
0313........................................................... 2313
0319........................................................... 2319
0360........................................................... 2360
------------------------------------------------------------------------
\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, July 15, 2008.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E8-16481 Filed 7-17-08; 8:45 am]
BILLING CODE 6210-01-P