[Federal Register Volume 62, Number 92 (Tuesday, May 13, 1997)]
[Rules and Regulations]
[Pages 26220-26221]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12442]


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FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Reg. CC; Docket No. R-0970]


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 is publishing technical amendments to Appendix A of 
Regulation CC. The amendments will conform Appendix A to a realignment 
in Federal Reserve check-processing regions by adding the First 
District routing numbers formerly assigned to the Lewiston check-
processing region to the Boston Head Office.

EFFECTIVE DATE: October 27, 1997.

FOR FURTHER INFORMATION CONTACT: Stephanie Martin, Senior Attorney 
(202/452-3198), or Heatherun Allison, Attorney (202/452-3565), Legal 
Division. For the hearing impaired only: Telecommunications Device for 
the Deaf, Diane Jenkins (202/452-3544).

SUPPLEMENTARY INFORMATION: The Board's Regulation CC (12 CFR part 229) 
implements the Expedited Funds Availability Act (12 U.S.C. 4001 et 
seq.) (the Act) and requires banks,1 inter alia, to make 
funds deposited into transaction accounts available for withdrawal 
within specified time frames. The Act and regulation allow banks to 
place longer holds on nonlocal checks than on local checks. A nonlocal 
check is one for which the paying bank 2 is located in a 
different check-processing region than the depositary bank. Regulation 
CC defines ``check-

[[Page 26221]]

processing region'' as ``the geographical area served by an office of a 
Federal Reserve Bank for purposes of its check-processing activities.'' 
3 Appendix A of Regulation CC lists the Federal Reserve 
check-processing offices and the 4-digit routing number prefixes that 
are local to each office.
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    \1\ The term bank refers to any depository institution, 
including commercial banks, savings institutions, and credit unions.
    \2\ The paying bank is the bank by, at, or through which a check 
is payable. The depositary bank is the first bank to which a check 
is transferred.
    \3\ 12 CFR 229.2(m). The Act's definition is substantially 
similar (12 U.S.C. 4001(9)).
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    Effective October 27, 1997, the Federal Reserve Bank of Boston will 
discontinue processing checks at its Lewiston, Maine, regional check-
processing center and incorporate the Lewiston check-processing region 
into its Head Office check-processing region. This consolidation 
results from the determination by the Federal Reserve Bank of Boston 
that it can process the majority of checks handled by the Lewiston 
check-processing region more efficiently and cost-effectively through 
its Head Office. Accordingly, the Board has revised the routing number 
list in Appendix A to reflect the Lewiston-Head Office consolidation, 
effective October 27, 1997.
    Although the substance of Regulation CC will be unaffected by the 
amendments to Appendix A, the consolidation of check-processing regions 
may require some banks to adjust their internal procedures for 
assigning funds availability. For example, checks deposited in the 
former Lewiston region will now be considered local checks in the Head 
Office region (and vice versa). Banks that now distinguish between the 
Lewiston and Head Office regions in assigning availability will need to 
realign their internal operating systems to reflect the consolidation. 
These banks also will need to reflect any availability policy changes 
in their disclosures, as the availability for certain checks may be 
improved. Section 229.18(e) of Regulation CC provides that, in the case 
of an availability policy change that expedites the availability of 
funds, a bank shall send a notice of the change to holders of consumer 
accounts not later than 30 days after implementation.
    The amendments adopted by the Board are technical amendments that 
reflect the realignment of Federal Reserve check-processing regions and 
are required by the statutory and regulatory definitions of ``check-
processing region.'' Accordingly, 5 U.S.C. 553(b), requiring public 
comment, does not apply.

Final Regulatory Flexibility Analysis

    The amendment will apply to all banks, regardless of size. There is 
no possible alternative rule for small banks, as ``check-processing 
region'' is defined by the Expedited Funds Availability Act, which 
applies to all banks. The amendment will affect only those banks in the 
First District in the current Lewiston and Head Office check-processing 
regions that distinguish between checks drawn on paying banks located 
in those two regions for purposes of assigning availability. The Board 
expects that the majority of small institutions located in those two 
regions will be unaffected by the amendment.

List of Subjects in 12 CFR Part 229

    Banks, banking, Federal Reserve System, Reporting and recordkeeping 
requirements.

    For the reasons set out in the preamble, 12 CFR part 229 is amended 
as follows:
    1. The authority citation for part 229 continues to read as 
follows:

    Authority: 12 U.S.C. 4001 et seq.

Appendix A to Part 229 [Amended]

    2. In Appendix A to part 229, under the heading ``FIRST FEDERAL 
RESERVE DISTRICT,'' the numbers appearing directly under the subheading 
``Lewiston Office'' are transferred in numerical order under the 
subheading ``Head Office'', and the subheading ``Lewiston Office'' is 
removed.

    By order of the Board of Governors of the Federal Reserve 
System, May 7, 1997.
William W. Wiles,
Secretary of the Board.
[FR Doc. 97-12442 Filed 5-12-97; 8:45 am]
BILLING CODE 6210-01-P