[Federal Register Volume 73, Number 5 (Tuesday, January 8, 2008)]
[Rules and Regulations]
[Pages 1267-1269]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-6]
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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. 5 / Tuesday, January 8, 2008 / Rules
and Regulations
[[Page 1267]]
FEDERAL RESERVE SYSTEM
12 CFR Part 229
[Regulation CC; Docket No. R-1306]
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 Utica office of the
Federal Reserve Bank of New York and reassign the Federal Reserve
routing symbols currently listed under that office to the head office
of the Federal Reserve Bank of Cleveland and the head office of the
Federal Reserve Bank of Philadelphia. The Board is also amending
appendix B of Regulation CC to delete the reference to the Utica
office. In addition, the Board is providing advance notice of future
amendments to appendix A that are anticipated in connection with the
next phase of the Reserve Banks' restructuring of the check-processing
operations within the Federal Reserve System.
DATES: The amendments to appendix A under the Second and Fourth Federal
Reserve Districts (Federal Reserve Banks of New York and Cleveland)
that revise the listings for the Utica office and the Cleveland head
office are effective February 23, 2008.
The amendment to appendix A under the Third Federal Reserve
District (Federal Reserve Bank of Philadelphia) is effective March 29,
2008. The removal of the second Federal Reserve District (Federal
Reserve Bank of New York) is effective March 29, 2008.
The revision of appendix B is effective March 29, 2008.
FOR FURTHER INFORMATION CONTACT: Jack K. Walton II, Associate Director
(202/452-2660), or Joseph P. Baressi, Financial Services Project Leader
(202/452-3959), Division of Reserve Bank Operations and Payment
Systems; or Heatherun Sophia Allison (202/452-3565), Senior Counsel,
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.
Final Amendments to Appendix A and Appendix B
The Reserve Banks announced in June 2007 that the check-processing
operations of the Utica office of the Federal Reserve Bank of New York
would cease in the first quarter of 2008.\2\ Effective February 23,
2008, banks with 0220, 2220, 0223, and 2223 routing symbols, currently
assigned to the Utica office of the Federal Reserve Bank of New York
for check-processing purposes, will be reassigned to the head office of
the Federal Reserve Bank of Cleveland. On March 29, 2008, banks with
0213 and 2213 routing symbols, also currently assigned to the Utica
office for check-processing purposes, will be reassigned to the head
office of the Federal Reserve Bank of Philadelphia.\3\ As a result of
these changes, some checks that are drawn on and deposited in banks
located in the affected check-processing regions and that currently are
nonlocal checks will become local checks subject to faster availability
schedules.
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\2\ The Reserve Banks' June 2007 press release is available
online at http://www.federalreserve.gov/newsevents/press/other/20070626a.htm.
\3\ Banks in the current Utica, Cleveland, and Philadelphia
check-processing regions should note that the Federal Reserve Banks'
transfer of the Utica office's check-processing operations to both
the Cleveland head office and the Philadelphia head office differs
from the Reserve Banks' June 2007 announcement indicating that the
Utica office's operations would be transferred to the Philadelphia
head office. The Reserve Banks believe that this arrangement will
better serve the needs of affected depository institutions.
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The Board is amending the lists of routing symbols associated with
the Federal Reserve Banks of New York, Philadelphia, and Cleveland to
conform to the transfer of operations from the New York Reserve Bank's
Utica office to the Cleveland and Philadelphia Reserve Banks' head
offices. The amendments affecting the Federal Reserve Banks of New York
and Cleveland that list the 0220, 2220, 0223, and 2223 routing symbols
under the Cleveland head office are effective February 23, 2008. The
amendments that list the 0213 and 2213 routing symbols under the
Philadelphia head office and delete the appendix A reference to the
Utica office are effective March 29, 2008. In addition, because the
Utica check-processing region will no longer exist, the Board is
deleting the appendix B reference to the Utica office, and these
[[Page 1268]]
amendments are also effective March 29, 2008.
The Board believes that today's notice should provide banks ample
time to make any needed processing changes before the effective date of
the amendments, including allowing affected banks to amend their
availability schedules and related disclosures, if necessary, and
provide their customers with notice of these changes.\4\ The Federal
Reserve routing symbols assigned to all other Federal Reserve branches
and offices will remain the same at this time. The Board, however,
intends to issue similar notices approximately sixty days prior to the
elimination of check-processing operations at some other Reserve Bank
offices, as described below.
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\4\ Section 229.18(e) of Regulation CC requires banks to notify
consumer account holders within 30 days after implementing a change
that improves the availability of funds.
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Information About Anticipated Future Changes to Appendix A
The Federal Reserve Banks announced in June 2007 \5\ additional
planned reductions in the number of locations at which they will
process checks. These steps were taken in response to the continued
nationwide decline in check usage and to position the Reserve Banks
more effectively to meet the cost recovery requirements of the Monetary
Control Act of 1980. Between 2008 and early 2011, the Reserve Banks
plan to cease check-processing operations at all of their check-
processing offices except four: Cleveland, Philadelphia, Atlanta, and
Dallas. Listed below are the branches and offices from which and to
which the Reserve Banks plan to transfer check-processing operations
and the tentative timeframe for each transfer: \6\
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\5\ See footnote two above.
\6\ In addition, as the Reserve Banks announced in May 2006, the
Reserve Banks plan to cease check-processing operations at the head
office of the Federal Reserve Bank of Kansas City in the first half
of 2008. (See http://www.federalreserve.gov/newsevents/press/other/20060531a.htm.) Rather than transfer Kansas City check-processing
operations to the head office of the Federal Reserve Bank of St.
Louis as they announced at that time, however, the Reserve Banks
instead plan to transfer the Kansas City check-processing operations
to the head office of the Federal Reserve Bank of Dallas. For
updates on the Reserve Banks' check-processing plans, see http://www.frbservices.org/Retail/CheckProcessChanges2008.html.
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Branches and offices to which check
Branches and offices that no longer processing is planned to be Tentative timeframe for transfer
will process checks transferred
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Memphis, TN Atlanta, GA Third quarter 2008.
Cincinnati, OH Cleveland, OH Fourth quarter 2008.
Seattle, WA Dallas, TX Fourth quarter 2008.
Windsor Locks, CT Philadelphia, PA First quarter 2009.
Charlotte, NC Atlanta, GA Second quarter 2009.
Minneapolis, MN Cleveland, OH Third quarter 2009.
Baltimore, MD Philadelphia, PA Fourth quarter 2009.
Chicago, IL Cleveland, OH First quarter 2010.
Denver, CO Dallas, TX Second quarter 2010.
Jacksonville, FL Atlanta, GA Third quarter 2010.
Des Moines, IA Cleveland, OH Fourth quarter 2010.
Los Angeles, CA Dallas, TX Fourth quarter 2010.
St. Louis, MO Atlanta, GA First quarter 2011.
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The Board plans to amend appendix A in connection with each stage
of the restructuring to delete the name of the office that will no
longer process checks and transfer the affected Federal Reserve routing
symbols to another check-processing office. The Board intends to
provide notice of each stage of the restructuring and the associated
amendments to appendix A approximately 60 days prior to the effective
date of the amendment in order to give affected banks ample time to
make processing changes and, if necessary, amend their availability
schedules and related disclosures and provide their customers with
notice of any changes to their availability schedules.
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 section 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 amendments to appendix A of Regulation CC
will delete the reference to the Utica office of the Federal Reserve
Bank of New York and reassign the routing symbols listed under that
office to the head offices of the Federal Reserve Banks of Philadelphia
and Cleveland. The technical amendment to appendix B of Regulation CC
will delete the reference to the Utica office. 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.
[[Page 1269]]
0
2. Effective February 23, 2008, the Second and Fourth 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
* * * * *
Second Federal Reserve District
[Federal Reserve Bank of New York]
Utica Office
0213
2213
* * * * *
Fourth Federal Reserve District
[Federal Reserve Bank of Cleveland]
Head Office
0220
0223
0410
0412
0430
0432
0433
0434
0440
0441
0720
0724
2220
2223
2410
2412
2430
2432
2433
2434
2440
2441
2720
2724
Cincinnati Branch
0420
0421
0422
0423
0442
0515
0519
0740
0749
0813
0830
0839
0863
2420
2421
2422
2423
2442
2515
2519
2740
2749
2813
2830
2839
2863
* * * * *
0
3. Effective March 29, 2008, the Second and Third Federal Reserve
District routing symbol lists in appendix A are amended by removing the
Second Federal Reserve District and revising the Third Federal Reserve
District to read as follows:
Appendix A to Part 229--Routing Number Guide to Next-Day Availability
Checks and Local Checks
* * * * *
Third Federal Reserve District
[Federal Reserve Bank of Philadelphia]
Head Office
0210
0212
0213
0214
0215
0216
0219
0260
0280
0310
0311
0312
0313
0319
0360
2210
2212
2213
2214
2215
2216
2219
2260
2280
2310
2311
2312
2313
2319
2360
* * * * *
0
4. Appendix B is revised to read as follows:
Appendix B to Part 229--Reduction of Schedules for Certain Nonlocal
Checks
A depositary bank that is located in the following check-
processing territories shall make funds deposited in an account by a
nonlocal check described below available for withdrawal not later
than the number of business days following the banking day on which
funds are deposited, as specified below.
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Number of
business days
Federal Reserve office following the
banking day funds
are deposited
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Kansas City 0865, 2865............................... 3
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By order of the Board of Governors of the Federal Reserve
System, January 2, 2008.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E8-6 Filed 1-7-08; 8:45 am]
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