[Federal Register Volume 69, Number 97 (Wednesday, May 19, 2004)]
[Rules and Regulations]
[Pages 28819-28820]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-11269]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 Prices of new books are listed in the first FEDERAL REGISTER issue of each 
 week.
 
 ========================================================================
 

  Federal Register / Vol. 69 , No. 97 / Wednesday, May 19, 2004 / Rules 
and Regulations  

[[Page 28819]]



FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1194]


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 
to delete the reference to the Little Rock check processing office of 
the Federal Reserve Bank of St. Louis and reassign the Federal Reserve 
routing symbols currently listed under that office to the St. Louis 
Reserve Bank's Memphis office and delete the reference to the Milwaukee 
check processing office of the Federal Reserve Bank of Chicago and 
reassign the Federal Reserve routing symbols currently listed under 
that office to the head office of the Federal Reserve Bank of Chicago. 
These amendments reflect the restructuring of check processing 
operations within the Federal Reserve System.

DATES: The amendment to Appendix A under the Eighth Federal Reserve 
District (Federal Reserve Bank of St. Louis) is effective on July 24, 
2004. The amendment to Appendix A under the Seventh Federal Reserve 
District (Federal Reserve Bank of Chicago) is effective on August 7, 
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.''
---------------------------------------------------------------------------

    \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 Little Rock 
office of the Federal Reserve Bank of St. Louis will cease processing 
checks on July 24, 2004, and banks with routing symbols currently 
assigned to that office for check processing purposes will be 
reassigned to the Federal Reserve Bank of St. Louis's Memphis office. 
The Milwaukee office of the Federal Reserve Bank of Chicago will cease 
processing checks on August 7, 2004, and banks with routing symbols 
currently assigned to that office for check processing purposes will be 
reassigned to the head office of the Federal Reserve Bank of Chicago. 
As a result of these changes, some checks that are drawn on and 
deposited at banks located in the affected 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.
---------------------------------------------------------------------------

    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 St. Louis and Chicago to reflect the 
transfer of operations (1) from the St. Louis Reserve Bank's Little 
Rock office to that Reserve Bank's Memphis office and (2) from the 
Chicago Reserve Bank's Milwaukee office to that Reserve Bank's head 
office. To coincide with the effective date of the underlying check 
processing changes, the amendments affecting the Federal Reserve Bank 
of St. Louis are effective July 24, 2004, and the amendments affecting 
the Federal Reserve Bank of Chicago are effective August 7, 2004. 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

[[Page 28820]]

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 Sec.  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 (1) delete the reference to the Little Rock office of the Federal 
Reserve Bank of St. Louis and reassign the routing symbols listed under 
that office to the St. Louis Reserve Bank's Memphis office and (2) 
delete the reference to the Milwaukee office of the Federal Reserve 
Bank of Chicago and reassign the routing symbols listed under that 
office to the Chicago Reserve Bank's head office. 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 Seventh and Eighth 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

* * * * *

Seventh Federal Reserve District

[Federal Reserve Bank of Chicago]

Head Office

0710 2710
0711 2711
0712 2712
0719 2719
0750 2750
0759 2759

Detroit Branch

0720 2720
0724 2724

Des Moines Office

0730 2730
0739 2739
1040 3040
1041 3041
1049 3049

Indianapolis Office

0740 2740
0749 2749

Eighth Federal Reserve District

[Federal Reserve Bank of St. Louis]

Head Office

0810 2810
0812 2812
0815 2815
0819 2819
0865 2865

Louisville Branch

0813 2813
0830 2830
0839 2839
0863 2863

Memphis Branch

0820 2820
0829 2829
0840 2840
0841 2841
0842 2842
0843 2843
* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, May 13, 2004.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 04-11269 Filed 5-18-04; 8:45 am]
BILLING CODE 6210-01-P