[Federal Register Volume 69, Number 7 (Monday, January 12, 2004)]
[Rules and Regulations]
[Pages 1655-1657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-534]


=======================================================================
-----------------------------------------------------------------------

FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1179]


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 is amending appendix A of Regulation CC

[[Page 1656]]

to delete the reference to the Miami check processing office of the 
Federal Reserve Bank of Atlanta and reassign the Federal Reserve 
routing symbols currently listed under that office to the Jacksonville 
office of the Federal Reserve Bank of Atlanta. These amendments reflect 
the restructuring of check processing operations within the Federal 
Reserve System.

DATES: The final rule will become effective on March 13, 2004.

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. Checks that do not meet the requirements for ``local'' 
checks are considered ``nonlocal.''
---------------------------------------------------------------------------

    \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. 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.
    As explained in detail in the Board's final rule published in the 
Federal Register on May 28, 2003, the Federal Reserve Banks decided in 
early 2003 to reduce the number of locations at which they process 
checks.\2\ As part of this restructuring process, the Miami office of 
the Federal Reserve Bank of Atlanta will cease processing checks on 
March 13, 2004. As of that date, banks with routing symbols currently 
assigned to the Miami office for check processing purposes will be 
reassigned to the Atlanta Reserve Bank's Jacksonville office. As a 
result of this change, some checks that are drawn on and deposited at 
banks located in the Miami and Jacksonville check processing regions 
and that currently are nonlocal checks will become local checks subject 
to faster availability schedules.
---------------------------------------------------------------------------

    \2\ See 68 FR 31592, May 28, 2003. In addition to the general 
advance notice of future amendments previously provided by the 
Board, as well as the Board's notices of final amendments, the 
Reserve Banks are striving to inform affected depository 
institutions of the exact date of each office transition at least 
120 days in advance. The Reserve Banks' communications to affected 
depository institutions are available at www.frbservices.org.
---------------------------------------------------------------------------

    The Board accordingly is amending the list of routing symbols 
assigned to Sixth District check processing offices to reflect the 
transfer of operations from Miami to Jacksonville and to assist banks 
in identifying local and nonlocal banks. These amendments are effective 
March 13, 2004, 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, intends to issue similar notices at least 
sixty days prior to the elimination of check operations at some other 
Reserve Bank offices, as described in the May 2003 Federal Register 
document.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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 appendix 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 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. This technical amendment to appendix A of Regulation CC 
will delete the reference to the Miami check processing office of the 
Federal Reserve Bank of Atlanta and reassign the routing symbols listed 
under that office to the Jacksonville office of the Federal Reserve 
Bank of Atlanta. 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, 
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.

12 CFR Chapter II

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 Sixth Federal Reserve District routing symbol list in appendix A 
is revised to read as follows:
* * * * *

Appendix A to Part 229--Routing Number Guide to Next-Day Availability 
Checks and Local Checks

Sixth Federal Reserve District

[Federal Reserve Bank of Atlanta]

Head Office

0610 2610
0611 2611
0612 2612
0613 2613

Birmingham Branch

0620 2620

[[Page 1657]]

0621 2621
0622 2622

Jacksonville Branch

0630 2630
0631 2631
0632 2632
0660 2660
0670 2670

Nashville Branch

0640 2640
0641 2641
0642 2642

New Orleans Branch

0650 2650
0651 2651
0652 2652
0653 2653
0654 2654
0655 2655
* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, January 6, 2004.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 04-534 Filed 1-9-04; 8:45 am]
BILLING CODE 6210-01-P