[Federal Register Volume 69, Number 122 (Friday, June 25, 2004)]
[Rules and Regulations]
[Pages 35505-35506]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-14505]



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 Rules and Regulations
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  Federal Register / Vol. 69, No. 122 / Friday, June 25, 2004 / Rules 
and Regulations  

[[Page 35505]]



FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1204]


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 Columbia check processing office of the 
Federal Reserve Bank of Richmond and reassign the Federal Reserve 
routing symbols currently listed under that office to that Reserve 
Bank's Charlotte office and delete the reference to the Louisville 
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 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 August 28, 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 for check processing purposes. 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 Columbia office 
of the Federal Reserve Bank of Richmond will cease processing checks on 
August 28, 2004, and banks with routing symbols currently assigned to 
that office for check processing purposes will be reassigned to that 
Reserve Bank's Charlotte office. The Louisville office of the Federal 
Reserve Bank of St. Louis will also cease processing checks on August 
28, 2004, and banks with routing symbols currently assigned to that 
office for check processing purposes will be reassigned to the 
Cincinnati office of the Federal Reserve Bank of Cleveland. 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. The Cincinnati office will serve banks located in the Fourth 
and Fifth Federal Reserve Districts as of June 26, 2004, when banks 
currently assigned to the Charleston office are reassigned to the 
Cincinnati office.\3\ The Cincinnati office also will serve banks 
located in the Eighth Federal Reserve District as of August 28, 2004, 
when banks currently assigned to the Louisville office are reassigned 
to the Cincinnati office. After these changes take effect, banks 
located in the Cincinnati check processing region 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 http://www.frbservices.org.
    \3\ See 69 FR 19921, April 15, 2004.
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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 Cleveland, Richmond, and St. Louis to 
reflect the transfer of operations (1) from the Richmond Reserve Bank's 
Columbia office to that Reserve Bank's Charlotte office and (2) from 
the St. Louis Reserve Bank's Louisville office to the Cleveland Reserve 
Bank's Cincinnati office. To coincide with the effective date of the 
underlying check processing changes, the amendments are effective 
August 28, 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.\4\ 
The Federal Reserve routing symbols assigned to all other Federal 
Reserve branches and offices will remain the same at this time. The 
Board of

[[Page 35506]]

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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    \4\ 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 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 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 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 Columbia office of the Federal Reserve 
Bank of Richmond and reassign the routing symbols listed under that 
office to that Reserve Bank's Charlotte office and (2) delete the 
reference to the Louisville office of the Federal Reserve Bank of St. 
Louis 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.

12 CFR Chapter II

List of Subjects in 12 CFR Part 229

    Banks, Banking, 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, Fifth, 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

* * * * *

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
0813 2813
0830 2830
0839 2839
0863 2863

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
0532 2532
0539 2539
* * * * *

Eighth Federal Reserve District

[Federal Reserve Bank of St. Louis]

Head Office

0810 2810
0812 2812
0815 2815
0819 2819
0865 2865

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, June 22, 2004.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 04-14505 Filed 6-24-04; 8:45 am]
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