[Federal Register Volume 73, Number 32 (Friday, February 15, 2008)]
[Rules and Regulations]
[Pages 8787-8788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-2869]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 Prices of new books are listed in the first FEDERAL REGISTER issue of each 
 week.
 
 ========================================================================
 

  Federal Register / Vol. 73, No. 32 / Friday, February 15, 2008 / 
Rules and Regulations  

[[Page 8787]]



FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1308]


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 (Board) is amending appendix A of 
Regulation CC to delete the reference to the head office of the Federal 
Reserve Bank of Kansas City and reassign the Federal Reserve routing 
symbols currently listed under that office to the head office of the 
Federal Reserve Bank of Dallas, and is amending appendix B of 
Regulation CC to delete the reference to the Kansas City head office.

DATES: The final rule will become effective on April 19, 2008.

FOR FURTHER INFORMATION CONTACT: Jeffrey S.H. Yeganeh, Financial 
Services Manager (202/728-5801), or Joseph P. Baressi, Financial 
Services Project Leader (202/452-3959), Division of Reserve Bank 
Operations and Payment Systems; or Heatherun Sophia Allison, Senior 
Counsel (202/452-3565), 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.''
---------------------------------------------------------------------------

    \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. 
Appendix B to Regulation CC reduces the generally permissible hold 
times for nonlocal check deposits collected between certain check-
processing regions from 5 days to 3 days due to generally faster 
collection times between these regions.
    On April 19, 2008, the Reserve Banks will transfer the check-
processing operations of the head office of the Federal Reserve Bank of 
Kansas City to the head office of the Federal Reserve Bank of 
Dallas.\2\ To assist banks in identifying local and nonlocal checks and 
making funds availability decisions, the Board is amending the lists of 
routing symbols in appendix A associated with the Federal Reserve Banks 
of Kansas City and Dallas to reflect the transfer of check-processing 
operations from the head office of the Federal Reserve Bank of Kansas 
City to the head office of the Federal Reserve Bank of Dallas. In 
addition, because the Kansas City check-processing region will no 
longer exist, the Board is deleting the appendix B reference to the 
Kansas City office, and, as a result of this change, there will be no 
offices listed in that appendix.
---------------------------------------------------------------------------

    \2\ The Reserve Banks announced in May 2006 that the check-
processing operations of the head office of the Federal Reserve Bank 
of Kansas City would be transferred to the head office of the 
Federal Reserve Bank of St. Louis in the first half of 2008. See 
http://www.federalreserve.gov/newsevents/press/other/20060531a.htm. 
The Board provided notice earlier this year, however, that the 
Kansas City check-processing operations instead would be transferred 
to the head office of the Federal Reserve Bank of Dallas. See 73 FR 
1267, January 8, 2008.
---------------------------------------------------------------------------

    To coincide with the effective date of the underlying check-
processing changes, the amendments to appendix A and appendix B are 
effective April 19, 2008. The Board is providing notice of the 
amendments at this time to give affected banks ample time to make any 
needed processing changes. Early 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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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. The revisions to appendix A and appendix B 
are technical in nature and 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. The technical amendment to appendix A of Regulation CC will 
delete the reference to the head office of the Federal Reserve Bank of 
Kansas City and reassign the routing symbols listed under that office 
to the head office of the Federal Reserve Bank of Dallas. The technical 
amendment to appendix B of Regulation CC will delete the reference to 
the Kansas City head office. The depository

[[Page 8788]]

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.

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 Tenth and Eleventh 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

* * * * *

Tenth Federal Reserve District

[Federal Reserve Bank of Kansas City]

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
 

Eleventh Federal Reserve District

[Federal Reserve Bank of Dallas]

Head Office

                   1010                                 3010
                   1011                                 3011
                   1012                                 3012
                   1019                                 3019
                   1030                                 3030
                   1031                                 3031
                   1039                                 3039
                   1110                                 3110
                   1111                                 3111
                   1113                                 3113
                   1119                                 3119
                   1120                                 3120
                   1122                                 3122
                   1123                                 3123
                   1130                                 3130
                   1131                                 3131
                   1140                                 3140
                   1149                                 3149
                   1163                                 3163
 

* * * * *

Appendix B to Part 229--[Removed]

0
3. Remove and reserve Appendix B.

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, February 12, 2008.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E8-2869 Filed 2-14-08; 8:45 am]
BILLING CODE 6210-01-P