[Federal Register Volume 74, Number 137 (Monday, July 20, 2009)] [Rules and Regulations] [Pages 35113-35114] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: E9-17103] ======================================================================= ----------------------------------------------------------------------- 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