[Federal Register Volume 73, Number 226 (Friday, November 21, 2008)]
[Rules and Regulations]
[Pages 70590-70591]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-27736]


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FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1339]


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 the routing number 
guide to next-day availability checks and local checks in Regulation CC 
to delete the reference to the Des Moines office of the Federal Reserve 
Bank of Chicago and to reassign the Federal Reserve routing symbols 
currently listed under that office to the head office of the Federal 
Reserve Bank of Chicago. These amendments reflect the restructuring of 
check-processing operations within the Federal Reserve System.

DATES: The final rule will become effective on January 31, 2009.

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.
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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.
    On January 31, 2009, the Reserve Banks will transfer the check-
processing operations of the Des Moines office of the Federal Reserve 
Bank of Chicago to the head office of the Federal Reserve Bank of 
Chicago.\2\ As a result of this change, some checks that are drawn on 
and deposited at banks located in the Des Moines and Chicago 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 Chicago to 
reflect the transfer of check-processing operations from the Des Moines 
office to the head office of the Federal Reserve Bank of Chicago. To 
coincide with the effective date of the underlying check-processing 
changes, the amendments to appendix A are effective January 31, 2009. 
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 March 2008 that the check-
processing operations of the Des Moines office would be transferred 
to the head office of the Federal Reserve Bank of Cleveland in the 
third quarter of 2009. See http://www.federalreserve.gov/newsevents/press/other/20080331a.htm. Banks in the current Des Moines, Chicago, 
and Cleveland check-processing regions should note that the Federal 
Reserve Banks' transfer of the Des Moines office's check-processing 
operations to the Chicago head office differs from that 
announcement. The Reserve Banks believe that this arrangement will 
better serve the needs of affected depository institutions.
    \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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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 Des Moines office of the Federal Reserve 
Bank of Chicago and reassign the routing symbols listed under that 
office to the head office of the Federal Reserve Bank of Chicago. 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.

[[Page 70591]]

Authority and Issuance

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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)

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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.


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2. The Seventh 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

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Seventh Federal Reserve District

[Federal Reserve Bank of Chicago]

Head Office

                   0710                                 2710
                   0711                                 2711
                   0712                                 2712
                   0719                                 2719
                   0730                                 2730
                   0739                                 2739
                   0750                                 2750
                   0759                                 2759
                   1040                                 3040
                   1041                                 3041
                   1049                                 3049
 

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    By order of the Board of Governors of the Federal Reserve 
System, November 18, 2008.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E8-27736 Filed 11-20-08; 8:45 am]
BILLING CODE 6210-01-P