[Federal Register Volume 73, Number 96 (Friday, May 16, 2008)]
[Rules and Regulations]
[Pages 28319-28320]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-10973]



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 Rules and Regulations
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  Federal Register / Vol. 73, No. 96 / Friday, May 16, 2008 / Rules and 
Regulations  

[[Page 28319]]



FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1317]


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 (Board) is amending appendix A of 
Regulation CC to delete the reference to the Memphis branch office of 
the Federal Reserve Bank of St. Louis and reassign the Federal Reserve 
routing symbols currently listed under that office to the head office 
of the Federal Reserve Bank of Atlanta. In addition, the Board is 
providing advance notice regarding future amendments to appendix A that 
are anticipated in connection with the Reserve Banks' restructuring of 
the check-processing operations within the Federal Reserve System.

DATES: The final rule will become effective on July 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 (202/452-
3565), Senior Counsel, 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

    On July 19, 2008, the Reserve Banks will transfer the check-
processing operations of the Memphis branch office of the Federal 
Reserve Bank of St. Louis to the head office of the Federal Reserve 
Bank of Atlanta.\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 St. Louis and Atlanta to reflect the transfer of 
check-processing operations from the Memphis branch office to the 
Atlanta head office. To coincide with the effective date of the 
underlying check-processing changes, the amendments to appendix A are 
effective July 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\
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    \2\ The Reserve Banks announced in June 2007 that the check-
processing operations of the Memphis branch office would be 
transferred to the Atlanta head office in the third quarter of 2008. 
See http://www.federalreserve.gov/newsevents/press/other/20070626a.htm.
    \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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Information About Anticipated Future Changes to Appendix A

    The Federal Reserve Banks announced on March 31, 2008, that they 
are accelerating their planned reductions in the number of locations at 
which they process checks.\4\ These steps are being taken in response 
to the continued nationwide decline in check usage and to position the 
Reserve Banks more effectively to meet the cost recovery requirements 
of the Monetary Control Act of 1980. Whereas they had previously 
announced that the transitions would take place by early 2011, the 
Reserve Banks now plan to cease check-processing operations at all of 
their check-processing offices except four--Philadelphia, Cleveland, 
Atlanta, and Dallas--by early 2010. As a result of the accelerated 
schedule, the tentative dates in the Board's earlier Federal Register 
notice (73 FR 1267, Jan. 8, 2008) regarding this matter are no longer 
accurate. Moreover, the accelerated schedule set forth in the Reserve 
Banks' March 2008 announcement is subject to further review and may 
change. Institutions seeking the most current information should 
consult the Reserve Banks' check-restructuring Web site.\5\
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    \4\ See http://www.federalreserve.gov/newsevents/press/other/20080331a.htm.
    \5\ http://www.frbservices.org/communications/check_restructuring.html.
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    The Board plans to amend appendix A in connection with each stage 
of the restructuring to delete the names of the offices that will no 
longer process checks and transfer the affected Federal Reserve routing 
symbols to other check-processing offices. The Board intends to provide 
notice of each amendment to appendix A approximately 60 days prior to 
the effective date of the amendment in order to give affected banks 
ample time to make processing changes and, if

[[Page 28320]]

necessary, amend their availability schedules and related disclosures 
and provide their customers with notice of any changes to their 
availability schedules.

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 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 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 amendments to appendix A of Regulation CC will 
delete the reference to the Memphis branch office of the Federal 
Reserve Bank of St. Louis 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.

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 Eighth 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
                   0640                                 2640
                   0641                                 2641
                   0642                                 2642
                   0650                                 2650
                   0651                                 2651
                   0652                                 2652
                   0653                                 2653
                   0654                                 2654
                   0655                                 2655
                   0820                                 2820
                   0829                                 2829
                   0840                                 2840
                   0841                                 2841
                   0842                                 2842
                   0843                                 2843
 

Jacksonville Branch

                   0630                                 2630
                   0631                                 2631
                   0632                                 2632
                   0660                                 2660
                   0670                                 2670
 

* * * * *

EIGHTH FEDERAL RESERVE DISTRICT

[Federal Reserve Bank of St. Louis]

Head Office

                   0810                                 2810
                   0812                                 2812
                   0815                                 2815
                   0819                                 2819
                   0865                                 2865
 

* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, May 13, 2008.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E8-10973 Filed 5-15-08; 8:45 am]
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