[Federal Register Volume 70, Number 155 (Friday, August 12, 2005)]
[Rules and Regulations]
[Pages 47085-47086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-15998]


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FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1233]


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 Portland branch office of the Federal 
Reserve Bank of San Francisco and reassign the Federal Reserve routing 
symbols currently listed under that office to the Seattle branch office 
of the Federal Reserve Bank of San Francisco. 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 October 22, 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 appendix A amendments set forth in this notice relate to 
one phase of the overall restructuring plan. The Board will issue 
separate notices for each subsequent 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 Portland branch office of 
the Federal Reserve Bank of San Francisco will cease processing checks 
on October 22, 2005, and banks with routing symbols currently assigned 
to that office for check processing purposes will be reassigned to the 
Seattle branch office of the Federal Reserve Bank of San Francisco. 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.
    To assist banks in identifying local and nonlocal banks, the Board 
accordingly is amending the list of routing symbols associated with the 
Federal Reserve Bank of San Francisco to conform to the transfer of 
operations from the Reserve Bank's Portland branch office to the 
Seattle branch office. To coincide with the effective date of the 
underlying check processing changes, the amendments are effective 
October 22, 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, 
if necessary, to amend their availability schedules and related 
disclosures and provide their customers with notice of

[[Page 47086]]

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 
delete the reference to the Portland branch office of the Federal 
Reserve Bank of San Francisco and reassign the routing symbols listed 
under that office to the Seattle branch office of the Federal Reserve 
Bank of San Francisco. 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 Twelfth 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

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                    Twelfth Federal Reserve District
                 (Federal Reserve Bank of San Francisco)
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Head Office
1210............................................................    3210
1211............................................................    3211
1212............................................................    3212
1213............................................................    3213
Los Angeles Branch
1220............................................................    3220
1221............................................................    3221
1222............................................................    3222
1223............................................................    3223
1224............................................................    3224
Seattle Branch
1230............................................................    3230
1231............................................................    3231
1232............................................................    3232
1233............................................................    3233
1250............................................................    3250
1251............................................................    3251
1252............................................................    3252
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    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, August 8, 2005.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 05-15998 Filed 8-11-05; 8:45 am]
BILLING CODE 6210-01-P