[Federal Register Volume 72, Number 159 (Friday, August 17, 2007)]
[Rules and Regulations]
[Pages 46143-46144]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-16184]


=======================================================================
-----------------------------------------------------------------------

FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1293]


Availability of Funds and Collection of Checks

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule; technical amendment.

-----------------------------------------------------------------------

SUMMARY: The Board of Governors is amending appendix A of Regulation CC 
to delete the reference to the Helena branch office of the Federal 
Reserve Bank of Minneapolis and reassign the Federal Reserve routing 
symbols currently listed under that office to the Denver branch office 
of the Federal Reserve Bank of Kansas City. 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 20, 2007.

FOR FURTHER INFORMATION CONTACT: Jack K. Walton II, Associate Director 
(202/452-2660), or Joseph P. Baressi, Financial Services Project Leader 
(202/452-3959), Division of Reserve Bank Operations and Payment 
Systems; or Kara L. Handzlik, Attorney (202/452-3852), 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.
---------------------------------------------------------------------------

    \1\ For purposes of Regulation CC, the term ``bank'' refers to 
any depository institution, including commercial banks, savings 
institutions, and credit unions.
---------------------------------------------------------------------------

    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 the Board's final rule published in the Federal 
Register on May 18, 2007, 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 amendments set forth in this notice are such 
final rules.\3\
---------------------------------------------------------------------------

    \2\ See 72 FR 27951, May 18, 2007.
    \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 strive 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.
---------------------------------------------------------------------------

    As part of the restructuring process, the Helena branch office of 
the Federal Reserve Bank of Minneapolis will cease processing checks on 
October 20, 2007.\4\ As of that date, banks with routing symbols 
currently assigned to the Helena branch office for check processing 
purposes will be reassigned to the Denver branch office of the Federal 
Reserve Bank of Kansas City. As

[[Page 46144]]

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. Because the Denver check processing 
region serves banks located in multiple Federal Reserve districts, 
banks located in the expanded Denver 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.
---------------------------------------------------------------------------

    \4\ The Reserve Banks intend, however, for the Helena branch to 
continue serving as a site at which substitute checks are printed 
for delivery to paying banks.
---------------------------------------------------------------------------

    To assist banks in identifying local and nonlocal checks, the Board 
accordingly is amending the lists of routing symbols associated with 
the Federal Reserve Banks of Minneapolis and Kansas City to conform to 
the transfer of operations from the Minneapolis Reserve Bank's Helena 
branch office to the Kansas City Reserve Bank's Denver branch office. 
To coincide with the effective date of the underlying check processing 
changes, the amendments are effective October 20, 2007. 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.\5\ The Federal Reserve routing symbols 
assigned to all other Federal Reserve branches and offices will remain 
the same at this time.
---------------------------------------------------------------------------

    \5\ 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.
---------------------------------------------------------------------------

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. In addition, the underlying 
consolidation of Federal Reserve Bank check processing offices involves 
a matter relating to agency management, which is exempt from notice and 
comment procedures.

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 Helena branch office of the Federal 
Reserve Bank of Minneapolis and reassign the routing symbols listed 
under that office to the Denver branch office of the Federal Reserve 
Bank of Kansas City. 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 Ninth and Tenth 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

* * * * *

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

TENTH FEDERAL RESERVE DISTRICT

[Federal Reserve Bank of Kansas City]

Head Office

    1010 3010
    1011 3011
    1012 3012
    1019 3019

Denver Branch

    0920 2920
    0921 2921
    0929 2929
    1020 3020
    1021 3021
    1022 3022
    1023 3023
    1070 3070
    1240 3240
    1241 3241
    1242 3242
    1243 3243
* * * * *


    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, August 13, 2007.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E7-16184 Filed 8-16-07; 8:45 am]
BILLING CODE 6210-01-P