[Federal Register Volume 69, Number 73 (Thursday, April 15, 2004)]
[Rules and Regulations]
[Pages 19921-19922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-8527]



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 Rules and Regulations
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  Federal Register / Vol. 69, No. 73 / Thursday, April 15, 2004 / Rules 
and Regulations  

[[Page 19921]]


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FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1190]


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 Charleston check processing office of 
the Federal Reserve Bank of Richmond and reassign the Federal Reserve 
routing symbols currently listed under that office to the Cincinnati 
office of the Federal Reserve Bank of Cleveland. These amendments 
reflect the restructuring of check processing operations within the 
Federal Reserve System.

DATES: The final rule will become effective on June 26, 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 Charleston office 
of the Federal Reserve Bank of Richmond will cease processing checks on 
June 26, 2004. As of that date, banks with routing symbols currently 
assigned to the Charleston office for check processing purposes will be 
reassigned to the Cincinnati office of the Federal Reserve Bank of 
Cleveland. As a result of this change, some checks that are drawn on 
and deposited at banks located in the Charleston and Cincinnati check 
processing regions and that currently are nonlocal checks will become 
local checks subject to faster availability schedules. Also, after June 
26, 2004, the restructured Cincinnati check processing region will 
cross Federal Reserve District lines. Banks located in that region 
therefore no longer will be able to determine that a check is nonlocal 
solely because the paying bank for that check is located in another 
Federal Reserve District.
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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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    To assist banks in identifying local and nonlocal banks, the Board 
accordingly is amending the lists of routing symbols associated with 
the Federal Reserve Banks of Richmond and Cleveland to reflect the 
transfer of operations from the Federal Reserve Bank of Richmond's 
Charleston office to the Federal Reserve Bank of Cleveland's Cincinnati 
office. These amendments are effective June 26, 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 60 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 part 1320, Appendix A.1), the Board has reviewed the final 
rule under

[[Page 19922]]

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 Charleston check processing office of the 
Federal Reserve Bank of Richmond and reassign the routing symbols 
listed under that office to the Cincinnati 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 
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.

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 Fourth and Fifth 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

* * * * *

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
0515 2515
0519 2519

Columbus Office

0440 2440
0441 2441
0442 2442

Fifth Federal Reserve District

[Federal Reserve Bank of Richmond]

Baltimore Branch

0510 2510
0514 2514
0520 2520
0521 2521
0522 2522
0540 2540
0550 2550
0560 2560
0570 2570

Charlotte Branch

0530 2530
0531 2531

Columbia Office

0532 2532
0539 2539
* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, April 9, 2004.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 04-8527 Filed 4-14-04; 8:45 am]
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