[Federal Register Volume 73, Number 32 (Friday, February 15, 2008)]
[Rules and Regulations]
[Pages 8787-8788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-2869]
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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.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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Federal Register / Vol. 73, No. 32 / Friday, February 15, 2008 /
Rules and Regulations
[[Page 8787]]
FEDERAL RESERVE SYSTEM
12 CFR Part 229
[Regulation CC; Docket No. R-1308]
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 (Board) is amending appendix A of
Regulation CC to delete the reference to the head office of the Federal
Reserve Bank of Kansas City and reassign the Federal Reserve routing
symbols currently listed under that office to the head office of the
Federal Reserve Bank of Dallas, and is amending appendix B of
Regulation CC to delete the reference to the Kansas City head office.
DATES: The final rule will become effective on April 19, 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 Heatherun Sophia Allison, Senior
Counsel (202/452-3565), 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.
Appendix B to Regulation CC reduces the generally permissible hold
times for nonlocal check deposits collected between certain check-
processing regions from 5 days to 3 days due to generally faster
collection times between these regions.
On April 19, 2008, the Reserve Banks will transfer the check-
processing operations of the head office of the Federal Reserve Bank of
Kansas City to the head office of the Federal Reserve Bank of
Dallas.\2\ 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 Kansas City and Dallas to reflect the transfer of check-processing
operations from the head office of the Federal Reserve Bank of Kansas
City to the head office of the Federal Reserve Bank of Dallas. In
addition, because the Kansas City check-processing region will no
longer exist, the Board is deleting the appendix B reference to the
Kansas City office, and, as a result of this change, there will be no
offices listed in that appendix.
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\2\ The Reserve Banks announced in May 2006 that the check-
processing operations of the head office of the Federal Reserve Bank
of Kansas City would be transferred to the head office of the
Federal Reserve Bank of St. Louis in the first half of 2008. See
http://www.federalreserve.gov/newsevents/press/other/20060531a.htm.
The Board provided notice earlier this year, however, that the
Kansas City check-processing operations instead would be transferred
to the head office of the Federal Reserve Bank of Dallas. See 73 FR
1267, January 8, 2008.
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To coincide with the effective date of the underlying check-
processing changes, the amendments to appendix A and appendix B are
effective April 19, 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.\3\
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\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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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 and appendix B
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 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 technical amendment to appendix A of Regulation CC will
delete the reference to the head office of the Federal Reserve Bank of
Kansas City and reassign the routing symbols listed under that office
to the head office of the Federal Reserve Bank of Dallas. The technical
amendment to appendix B of Regulation CC will delete the reference to
the Kansas City head office. The depository
[[Page 8788]]
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.
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2. The Tenth and Eleventh 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
* * * * *
Tenth Federal Reserve District
[Federal Reserve Bank of Kansas City]
Denver Branch
0920 2920
0921 2921
0929 2929
1020 3020
1021 3021
1022 3022
1023 3023
1070 3070
1240 3240
1241 3241
1242 3242
1243 3243
Eleventh Federal Reserve District
[Federal Reserve Bank of Dallas]
Head Office
1010 3010
1011 3011
1012 3012
1019 3019
1030 3030
1031 3031
1039 3039
1110 3110
1111 3111
1113 3113
1119 3119
1120 3120
1122 3122
1123 3123
1130 3130
1131 3131
1140 3140
1149 3149
1163 3163
* * * * *
Appendix B to Part 229--[Removed]
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3. Remove and reserve Appendix B.
By order of the Board of Governors of the Federal Reserve
System, acting through the Secretary of the Board under delegated
authority, February 12, 2008.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E8-2869 Filed 2-14-08; 8:45 am]
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