[Federal Register Volume 70, Number 35 (Wednesday, February 23, 2005)]
[Rules and Regulations]
[Pages 8716-8718]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-3419]


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FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1224]


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 Detroit branch 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 Cleveland and delete the reference to the 
Houston branch office of the Federal Reserve Bank of Dallas and 
reassign the routing numbers listed under that office to the head 
office of that Reserve Bank. 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 amendments to appendix A under the Fourth and Seventh 
Federal Reserve Districts (Federal Reserve Banks of Cleveland and 
Chicago) are effective on April 16, 2005. The amendments to appendix A 
under the Eleventh Federal Reserve District (Federal Reserve Bank of 
Dallas) are effective on April 23, 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 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\ The amendments set forth in this notice are part of 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 Detroit branch office of 
the Federal

[[Page 8717]]

Reserve Bank of Chicago will cease processing checks on April 16, 2005, 
and banks with routing symbols currently assigned to that office for 
check processing purposes will be reassigned to the Federal Reserve 
Bank of Cleveland's head office. The Houston branch office of the 
Federal Reserve Bank of Dallas will cease processing checks on April 
23, 2005, and banks with routing symbols currently assigned to that 
office for check processing purposes will be reassigned to the Federal 
Reserve Bank of Dallas's head office. 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. Because the Cleveland check processing region will serve 
banks located in more than one Federal Reserve District, banks located 
in the expanded Cleveland check processing region cannot determine that 
a check is nonlocal solely because the paying bank for that check is 
located in another Federal Reserve district.
    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, Chicago, and Dallas to conform 
to the transfer of operations (1) from the Chicago Reserve Bank's 
Detroit branch office to the Cleveland Reserve Bank's head office and 
(2) from the Dallas Reserve Bank's Houston branch 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 Banks of Cleveland and Chicago are effective April 16, 
2005, and the amendments affecting the Federal Reserve Bank of Dallas 
are effective April 23, 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. These technical amendments to appendix A of Regulation CC will 
(1) delete the reference to the Detroit branch office of the Federal 
Reserve Bank of Chicago and reassign the routing symbols listed under 
that office to the head office of the Federal Reserve Bank of Cleveland 
and (2) delete the reference to the Houston branch office of the 
Federal Reserve Bank of Dallas and reassign the routing symbols listed 
under that office to the Dallas 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, 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 Fourth, Seventh, and Eleventh 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 
Check 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
0720 2720
0724 2724

Cincinnati Branch

0420 2420
0421 2421
0422 2422
0423 2423
0515 2515
0519 2519
0740 2740
0749 2749
0813 2813
0830 2830
0839 2839
0863 2863

Columbus Office

0440 2440
0441 2441
0442 2442
* * * * *

Seventh Federal Reserve District

[Federal Reserve Bank of Chicago]

Head Office

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

Des Moines Office

0730 2730
0739 2739
1040 3040
1041 3041
1049 3049
* * * * *

Eleventh Federal Reserve District

[Federal Reserve Bank of Dallas]

Head Office

1110 3110
1111 3111
1113 3113
1119 3119
1120 3120
1122 3122

[[Page 8718]]

1123 3123
1130 3130
1131 3131
1140 3140
1149 3149
1163 3163
* * * * *
    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, February 16, 2005.

Robert deV. Frierson,
Deputy Secretary of the Board.
[FR Doc. 05-3419 Filed 2-22-05; 8:45 am]
BILLING CODE 6210-01-P