[Federal Register Volume 70, Number 29 (Monday, February 14, 2005)]
[Rules and Regulations]
[Pages 7379-7381]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-2674]


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FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1221]


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 Birmingham branch office of the Federal 
Reserve Bank of Atlanta and reassign the Federal Reserve routing 
symbols currently listed under that office to the head office of the 
Federal Reserve Bank of Atlanta. These amendments will ensure that the 
information in appendix A accurately describes the actual structure of 
check processing operations within the Federal Reserve System.

DATES: The final rule will become effective on March 26, 2005.

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

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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 September 28, 2004, the Federal Reserve Banks have 
decided to reduce further the number of locations at which they process 
checks.\2\ This notice sets forth the first in a series of appendix A 
amendments related to that decision, and the Board will issue separate 
notices for each phase of the restructuring.\3\
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    \2\ See 69 FR 57837, September 28, 2004.
    \3\ In addition to the general advance notice of future 
amendments provided by the Board, and 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.
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    As part of the restructuring process, the Birmingham branch office 
of the Federal Reserve Bank of Atlanta will cease processing checks on 
March 26, 2005. As of that date, banks with routing symbols currently 
assigned to the Birmingham branch office for check processing purposes 
will be reassigned to the Atlanta Reserve Bank's head office. As a 
result of this change, some checks that are drawn on and deposited at 
banks located in the Birmingham and Atlanta check processing regions 
and that currently are nonlocal checks will become local checks subject 
to faster availability schedules.
    To assist banks in identifying local and nonlocal banks, the Board 
accordingly is amending the lists of routing symbols assigned to Sixth 
District check processing offices to conform to the transfer of 
operations from Birmingham to Atlanta. To coincide with the effective 
date of the underlying check processing changes, the amendments are 
effective March 26, 2005. The Board is providing advance notice of 
these amendments to give affected banks ample time to make any needed 
processing changes. The advance notice also will 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 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 September 2004 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 
delete the reference to the Birmingham branch office of the Federal 
Reserve Bank of Atlanta and reassign the routing symbols listed under 
that office to the head 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.

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. 4001-4010, 12 U.S.C. 5001-5018.


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]
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                               Head Office
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                   0610                                 2610
                   0611                                 2611
                   0612                                 2612
                   0613                                 2613
                   0620                                 2620
                   0621                                 2621
                   0622                                 2622
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                           Jacksonville Branch
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                   0630                                 2630
                   0631                                 2631
                   0632                                 2632
                   0660                                 2660
                   0670                                 2670
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                            Nashville Branch
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                   0640                                 2640
                   0641                                 2641
                   0642                                 2642
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                           New Orleans Branch
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                   0650                                 2650
                   0651                                 2651
                   0652                                 2652
                   0653                                 2653
                   0654                                 2654
                   0655                                 2655
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* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, acting through the

[[Page 7381]]

Secretary of the Board under delegated authority, February 7, 2005.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 05-2674 Filed 2-11-05; 8:45 am]
BILLING CODE 6210-01-P