[Federal Register Volume 73, Number 159 (Friday, August 15, 2008)]
[Rules and Regulations]
[Pages 47817-47818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-18850]

Rules and Regulations
                                                Federal Register

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Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Rules 
and Regulations

[[Page 47817]]


12 CFR Part 229

[Regulation CC; Docket No. R-1324]

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 Cincinnati branch office 
of the Federal Reserve Bank of Cleveland and to reassign the Federal 
Reserve routing symbols currently listed under that office to the head 
office of the Federal Reserve Bank of Cleveland. These amendments 
reflect the restructuring of check-processing operations within the 
Federal Reserve System.

DATES: The final rule will become effective on October 18, 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 Sophia H. Allison, Senior Counsel 
(202/452-3565), 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 is considered 
local if it is payable by or at or through a bank located in the same 
Federal Reserve check-processing region as the depositary bank.

    \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.
    On October 18, 2008, the Reserve Banks will transfer the check-
processing operations of the Cincinnati branch office of the Federal 
Reserve Bank of Cleveland to the head office of the Federal Reserve 
Bank of Cleveland. As a result of this change, some checks that are 
drawn on and deposited at banks located in the Cincinnati and Cleveland 
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 list of routing 
symbols in appendix A associated with the Federal Reserve Bank of 
Cleveland to reflect the transfer of check-processing operations from 
the Cincinnati branch office to the head office of the Federal Reserve 
Bank of Cleveland. To coincide with the effective date of the 
underlying check-processing changes, the amendments to appendix A are 
effective October 18, 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.\2\

    \2\ 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 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 amendment to appendix A of Regulation CC will 
delete the reference to the Cincinnati branch office of the Federal 
Reserve Bank of Cleveland and reassign the routing symbols listed under 
that office to the head office of the Federal Reserve Bank of 
Cleveland. 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

For the reasons set forth in the preamble, the Board is amending 12 CFR 
part 229 to read as follows:


1. The authority citation for part 229 continues to read as follows:

[[Page 47818]]

    Authority: 12 U.S.C. 4001-4010, 12 U.S.C. 5001-5018.

2. The Fourth District routing symbol list in appendix A is revised to 
read as follows:

Appendix A to Part 229--Routing Number Guide to Next-Day Availability 
Checks and Local Checks

* * * * *

Fourth Federal Reserve District

[Federal Reserve Bank of Cleveland]
Head Office
0220 2220
0223 2223
0410 2410
0412 2412
0420 2420
0421 2421
0422 2422
0423 2423
0430 2430
0432 2432
0433 2433
0434 2434
0440 2440
0441 2441
0442 2442
0515 2515
0519 2519
0720 2720
0724 2724
0740 2740
0749 2749
0813 2813
0830 2830
0839 2839
0863 2863
* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, August 11, 2008.
Robert deV. Frierson,
Deputy Secretary of the Board.
[FR Doc. E8-18850 Filed 8-14-08; 8:45 am]