[Federal Register Volume 70, Number 242 (Monday, December 19, 2005)]
[Rules and Regulations]
[Pages 74998-75000]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-7462]


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FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1244]


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 New Orleans 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, and to correct typographical errors in 
the routing symbols listed under the Helena branch office of the 
Federal Reserve Bank of Minneapolis. The Board also is providing notice 
that the previously announced transfer of the Nashville branch office's 
check-processing operations to the Atlanta head office will be delayed 
until 2007. Finally, the Board is providing advance notice concerning 
future appendix A changes affecting the Federal Reserve Bank of New 
York and the Federal Reserve Bank of Philadelphia.

DATES: The amendment to appendix A under the Ninth Federal Reserve 
District (Federal Reserve Bank of Minneapolis) is effective December 
19, 2005. The amendment to appendix A under the Sixth Federal Reserve 
District (Federal Reserve Bank of Atlanta) is effective on March 31, 
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

[[Page 74999]]

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:

Background

    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.

Final Amendments to Appendix A

    In the aftermath of Hurricane Katrina, the Federal Reserve Bank of 
Atlanta implemented its contingency operations plan, which included 
sending checks that normally would be processed by the New Orleans 
branch office instead to the Atlanta head office on a temporary basis. 
On December 5, 2005, the Federal Reserve Banks announced that banks 
with routing symbols currently assigned to the New Orleans branch 
office for check processing purposes would be reassigned to the Atlanta 
head office and that the New Orleans branch permanently would cease its 
check processing operations, effective March 31, 2006.\2\ As a result, 
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 checks and 
making funds availability decisions, the Board is amending the lists of 
routing symbols associated with the Federal Reserve Bank of Atlanta to 
reflect the transfer of check-processing operations from the Reserve 
Bank's New Orleans branch office to its head office in Atlanta. To 
coincide with the effective date of the underlying check processing 
changes, these amendments are effective March 31, 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.\3\
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    \2\ The Reserve Banks' press release is available at http://www.frbservices.org/Retail/pdf/PRNewOrleansPressRelease120505.pdf.
    \3\ 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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    The Reserve Banks had previously announced on August 2, 2004, that 
the check-processing operations of the Atlanta Reserve Bank's Nashville 
branch office would be transferred to the Atlanta Reserve Bank's head 
office by early 2006.\4\ However, because of the permanent transfer of 
the New Orleans branch office's check-processing operations to the 
Atlanta head office, the transfer of the Nashville branch office's 
check-processing operations to the Atlanta head office will be delayed 
until 2007.
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    \4\ See 69 FR 57837, September 28, 2004.
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    The Board also is making technical amendments to the list of 
routing symbols associated with the Helena branch office of the Federal 
Reserve Bank of Minnesota to correct typographical errors in the list. 
The lists of Federal Reserve routing symbols assigned to all other 
Federal Reserve branches and offices will remain the same at this time.

Information About Future Changes to Appendix A

    As the Federal Reserve Banks announced on May 25, 2005,\5\ in 
response to the continued nationwide decline in check usage and to 
position themselves more effectively to meet the cost recovery 
requirements of the Monetary Control Act of 1980, the Reserve Banks 
have decided to stop processing checks at the East Rutherford office of 
the Federal Reserve Bank of New York. Checks currently processed by 
that office instead will be processed at the head office of the Federal 
Reserve Bank of Philadelphia. Although an exact date for this 
restructuring has not been determined, it is expected to take place in 
the latter half of 2006.
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    \5\ The Reserve Banks' press release is available at http://www.frbservices.org/Retail/pdf/May2005FRBanksAnnounceChangesIncreaseEfficiency.pdf.
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    The Board intends to publish amendments to appendix A in connection 
with this restructuring to delete the reference to the East Rutherford 
office of the Federal Reserve Bank of New York and transfer the 
affected Federal Reserve routing symbols to the head office of the 
Federal Reserve Bank of Philadelphia at least 60 days prior to the 
effective date of the restructuring. This should give affected banks 
ample time to make appropriate programming changes and, if necessary, 
to amend their availability schedules and related disclosures and 
provide their customers with notice of any changes to their 
availability schedules. However, some affected banks might prefer to 
make or to plan for their necessary programming and availability 
changes prior to the effective dates of the relevant amendments. For 
the information and planning needs of affected banks, the Board today 
is providing advance notice that, as of the effective date of this 
restructuring, banks with the following Federal Reserve routing symbols 
will be local to the Philadelphia head office:

                   0210                                 2210
                   0212                                 2212
                   0214                                 2214
                   0215                                 2215
                   0216                                 2216
                   0219                                 2219
                   0260                                 2260
                   0280                                 2280
                   0310                                 2310
                   0311                                 2311
                   0312                                 2312
                   0313                                 2313
                   0319                                 2319
                   0360                                 2360
 

    The Federal Reserve routing symbols assigned to all other Federal 
Reserve branches and offices will be unaffected by this restructuring.

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 the final rule. All the revisions to the appendix are 
technical in nature, and the routing symbol revisions for the

[[Page 75000]]

Sixth District are required by the statutory and regulatory definitions 
of ``check-processing region.'' Because there is no substantive change 
on which to seek public input and because delaying the amendments may 
impede affected banks' ability to comply with Regulation CC, the Board 
has determined that the Sec.  553(b) notice and comment procedures are 
unnecessary.

Regulatory Flexibility Act Certification

    Pursuant to section 605(b) of the Regulatory Flexibility Act (5 
U.S.C. 605(b)), the Board certifies that the final rule will not have a 
significantly adverse economic impact on a substantial number of small 
entities. These amendments are technical, and the routing number 
changes are required by law. Moreover, these amendments apply to all 
banks regardless of their size. Many small banks generally provide 
next-day availability for all checks and will not be affected by this 
amendment. For the subset of small banks that does distinguish between 
checks subject to next-day availability and those subject to longer 
holds, the final rule should necessitate only minimal programming 
changes. Some of these affected banks might also have to modify their 
funds availability disclosures and notify both new and existing 
customers of the modified funds availability schedules.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3506; 5 CFR part 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 New Orleans 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, all 
paperwork collection procedures associated with Regulation CC already 
are in place, and the Board accordingly anticipates that no additional 
burden will be imposed as a result of this rulemaking. The Board is 
also correcting typographical errors in the routing symbol list under 
the Helena branch office of the Federal Reserve Bank of Minnesota. The 
Board anticipates that these corrections will not impose any burden.

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 and Ninth 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

* * * * *

Sixth Federal Reserve District

[Federal Reserve Bank of Atlanta]

Head Office

                   0610                                 2610
                   0611                                 2611
                   0612                                 2612
                   0613                                 2613
                   0620                                 2620
                   0621                                 2621
                   0622                                 2622
                   0650                                 2650
                   0651                                 2651
                   0652                                 2652
                   0653                                 2653
                   0654                                 2654
                   0655                                 2655
 

Jacksonville Branch

                   0630                                 2630
                   0631                                 2631
                   0632                                 2632
                   0660                                 2660
                   0670                                 2670
 

Nashville Branch

                   0640                                 2640
                   0641                                 2641
                   0642                                 2642
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* * * * *

Ninth Federal Reserve District

[Federal Reserve Bank of Minneapolis]

Head Office

                   0910                                 2910
                   0911                                 2911
                   0912                                 2912
                   0913                                 2913
                   0914                                 2914
                   0915                                 2915
                   0918                                 2918
                   0919                                 2919
                   0960                                 2960
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Helena Branch

                   0920                                 2920
                   0921                                 2921
                   0929                                 2929
 

* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, December 13, 2005.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E5-7462 Filed 12-16-05; 8:45 am]
BILLING CODE 6210-01-P