[Federal Register Volume 68, Number 169 (Tuesday, September 2, 2003)]
[Rules and Regulations]
[Pages 52077-52078]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-22333]



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 Rules and Regulations
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  Federal Register / Vol. 68, No. 169 / Tuesday, September 2, 2003 / 
Rules and Regulations  

[[Page 52077]]



FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1160]


Availability of Funds and Collection of Checks

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule.

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SUMMARY: The Board of Governors is amending appendix A of Regulation CC 
to delete the reference to the Pittsburgh check processing office of 
the Federal Reserve Bank of Cleveland and 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. The Board also is amending appendices A and E of Regulation CC 
to replace all references to Thomson Financial Publishing Inc. with 
more general references to ``an agent of the American Bankers 
Association.''

DATES: The final rule will become effective on November 1, 2003.

FOR FURTHER INFORMATION CONTACT: Jack K. Walton II, Assistant Director, 
(202) 452-2660, or Jeffrey S. H. Yeganeh, Manager, (202) 728-5801, 
Division of Reserve Bank Operations and Payment Systems; or Adrianne G. 
Threatt, Counsel, (202) 452-3554, 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 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. Otherwise, a check is 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. 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.
    Earlier this year, the Federal Reserve Banks decided to reduce the 
number of locations at which they process checks.\2\ As part of this 
restructuring process, the Pittsburgh office of the Federal Reserve 
Bank of Cleveland will cease processing checks on November 1, 2003. As 
of that date, banks with routing symbols currently assigned to the 
Pittsburgh office for check processing purposes will be reassigned to 
the Cleveland Reserve Bank's head office. As a result of this change, 
some checks that are drawn on and deposited at banks located in the 
Pittsburgh and Cleveland check processing regions and that currently 
are nonlocal checks will become local checks subject to faster 
availability schedules.
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    \2\ See 68 FR 31592, May 28, 2003.
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    The Board accordingly is amending the list of routing symbols 
assigned to Fourth District check processing offices to reflect the 
transfer of operations from Pittsburgh to Cleveland and to assist banks 
in identifying local and nonlocal banks. These amendments are effective 
November 1, 2003, to coincide with the effective date of the underlying 
check processing changes. The Board is providing advance notice of 
these amendments to give affected banks ample time to make any needed 
processing changes. The advance notice will also enable affected banks 
to amend their availability schedules and related disclosures, if 
necessary, and provide their customers with notice of these changes.\3\ 
The Federal Reserve routing symbols assigned to all other Federal 
Reserve branches and offices will remain the same at this time. The 
Board of Governors, however, will issue similar notices at least sixty 
days prior to the elimination of check operations at some other Reserve 
Bank offices, as described in the announcement earlier this year.
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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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    The Board also is amending Regulation CC and its appendices to 
eliminate all references to Thomson Financial Publishing Inc., which 
has changed its name to TFP. To avoid having to make future changes 
because of a name change or substitution of service provider, the rule 
and appendices henceforth simply will refer to ``an agent of the 
American Bankers Association.''

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 this final rule. The revisions to the appendices are 
technical in nature, and the routing symbol revisions 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.

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 reviewed the final rule under 
the authority delegated to the Board by the Office of Management and 
Budget. This technical amendment to appendix A of Regulation CC will 
delete the reference to the Pittsburgh check processing office of the 
Federal Reserve Bank of Cleveland and reassign the routing symbols 
listed under that office to the

[[Page 52078]]

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 symbols in their disclosure statements 
would be required to notify customers of the resulting change in 
availability under Sec.  229.18(e). However, because all paperwork 
collection procedures associated with Regulation CC already are in 
place, the Board anticipates that no additional burden will be imposed 
as a result of this rulemaking.

List of Subjects in 12 CFR Part 229

    Banks, Banking, Federal Reserve System, 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 et seq.

0
2. The first sentence of paragraph A and the Fourth Federal Reserve 
District routing symbol list 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

    A. Each bank is assigned a routing number by an agent of the 
American Bankers Association. * * *
* * * * *

Fourth Federal Reserve District

[Federal Reserve Bank of Cleveland]

Head Office

0410 2410
0412 2412
0430 2430
0432 2432
0433 2433
0434 2434

Cincinnati Branch

0420 2420
0421 2421
0422 2422
0423 2423

Columbus Office

0440 2440
0441 2441
0442 2442
* * * * *

0
3. Appendix E is amended by removing the phrase ``Thomson Financial 
Publishing Inc.'' in sections II.DD., XVIII.A.2.b.ii., and 
XXII.B.2.b.i. and adding the phrase ``an agent of the American Bankers 
Association'' in its place.

    By order of the Board of Governors of the Federal Reserve 
System, August 27, 2003.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 03-22333 Filed 8-29-03; 8:45 am]
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