[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
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
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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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