[Federal Register Volume 70, Number 236 (Friday, December 9, 2005)]
[Rules and Regulations]
[Pages 73128-73129]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-7098]


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FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1242]


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 head office of the Federal Reserve Bank 
of Boston and reassign the Federal Reserve routing symbols currently 
listed under that office to the Windsor Locks office of the Federal 
Reserve Bank of Boston. 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 February 25, 2006.

FOR FURTHER INFORMATION CONTACT: Jack K. Walton II, Associate 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 restructure their check processing services by reducing 
further the number of locations at which they process checks.\2\ The 
Board issues separate final rules amending appendix A for each phase of 
the restructuring, and the

[[Page 73129]]

amendments set forth in this notice are such final rules.\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 head office of the 
Federal Reserve Bank of Boston will cease processing checks on February 
25, 2006. As of that date, banks with routing symbols currently 
assigned to the Boston head office for check processing purposes will 
be reassigned to the Boston Reserve Bank's Windsor Locks office. As a 
result of this change, 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 lists of routing symbols assigned to First 
District check processing offices to conform to the transfer of 
operations from the Boston head office to the Windsor Locks office. To 
coincide with the effective date of the underlying check processing 
changes, the amendments are effective February 25, 2006. 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 section 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 head office of the Federal Reserve Bank of 
Boston and reassign the routing symbols listed under that office to the 
Windsor Locks office of the Federal Reserve Bank of Boston. 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

    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 First 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

* * * * *

                     FIRST FEDERAL RESERVE DISTRICT
                    [Federal Reserve Bank of Boston]
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Windsor Locks Office:
0110 \1\                             2110 \2\
0111                                 2111
0112                                 2112
0113                                 2113
0114                                 2114
0115                                 2115
0116                                 2116
0117                                 2117
0118                                 2118
0119                                 2119
0211 \3\                             2211 \3\
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\1\ The first two digits identify the Federal Reserve District. For
  example, 01 identifies the First Federal Reserve District (Boston),
  and 12 identifies the Twelfth District (San Francisco).
\2\ Adding 2 to the first digit denotes a thrift institution. For
  example, 21 identifies a thrift in the First District, and 32 denotes
  a thrift in the Twelfth District.
\3\ Banks in Fairfield County, Connecticut, are members of the Federal
  Reserve Bank of New York and therefore have Second District routing
  numbers. Their checks, however, are processed by the Windsor Locks
  office. Thus, checks drawn on banks with 0211 or 2211 routing numbers
  would not be local checks for Second District depositary banks.

* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, December 5, 2005.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E5-7098 Filed 12-8-05; 8:45 am]
BILLING CODE 6210-01-P