[Federal Register Volume 69, Number 45 (Monday, March 8, 2004)]
[Rules and Regulations]
[Pages 10602-10603]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-5050]


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FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1185]


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 is amending appendix A of Regulation CC 
to delete the reference to the El Paso check processing office of the 
Federal Reserve Bank of Dallas and reassign the Federal Reserve routing 
symbols currently listed under that office to the head office of the 
Federal Reserve Bank of Dallas. These amendments reflect the 
restructuring of check processing operations within the Federal Reserve 
System.

DATES: The final rule will become effective on May 15, 2004.

FOR FURTHER INFORMATION CONTACT: Jack K. Walton II, Assistant Director 
(202/452-2660), or Joseph P. Baressi, Senior Financial Services Analyst 
(202/452-3959), 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.''
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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.
    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 El Paso office of 
the Federal Reserve Bank of Dallas will cease processing checks on May 
15, 2004. As of that date, banks with routing symbols currently 
assigned to the El Paso office for check processing purposes will be 
reassigned to the Dallas Reserve Bank's head office. As a result of 
this change, some checks that are drawn on and deposited at banks 
located in the El Paso and Dallas 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. 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.
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    The Board accordingly is amending the list of routing symbols 
assigned to Eleventh District check processing offices to reflect the 
transfer of operations from El Paso to Dallas and to assist banks in 
identifying local and nonlocal banks. These amendments are effective 
May 15, 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.
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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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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 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 El Paso check processing office of the 
Federal Reserve Bank of Dallas and reassign the routing symbols listed 
under that office to the head office of the Federal Reserve Bank of 
Dallas. 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

[[Page 10603]]

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 Eleventh 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

* * * * *

Eleventh Federal Reserve District

[Federal Reserve Bank of Dallas]

Head Office

1110 3110
1111 3111
1113 3113
1119 3119
1120 3120
1122 3122
1123 3123
1163 3163

Houston Branch

1130 3130
1131 3131

San Antonio Branch

1140 3140
1149 3149
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    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, March 2, 2004.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 04-5050 Filed 3-5-04; 8:45 am]
BILLING CODE 6210-01-P