[Federal Register Volume 74, Number 218 (Friday, November 13, 2009)]
[Rules and Regulations]
[Pages 58537-58538]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-27189]



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 Rules and Regulations
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  Federal Register / Vol. 74, No. 218 / Friday, November 13, 2009 / 
Rules and Regulations  

[[Page 58537]]



FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1376]


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 head office of the Federal Reserve Bank 
of Philadelphia 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 December 12, 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 Dena L. Milligan, Attorney (202/452-
3900), 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 December 12, 2009, the Reserve Banks will transfer the check-
processing operations of the head office of the Federal Reserve Bank of 
Philadelphia 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 Philadelphia 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 lists of routing symbols in 
appendix A associated with the Federal Reserve Banks of Philadelphia 
and Cleveland to reflect the transfer of check-processing operations 
from the head office of the Federal Reserve Bank of Philadelphia 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 December 12, 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.\2\
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    \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.
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Administrative Procedure Act

    The public comment requirements of section 553(b) of the 
Administrative Procedure Act do not apply to these amendments to 
Appendix A of Regulation CC because the amendments involve matters of 
agency organization. The Monetary Control Act requires cost recovery 
for Federal Reserve Bank priced services over the long term, which from 
time to time necessitates changes in the internal organization of 
Reserve Bank services in order to meet the statutory mandate. The rapid 
decline in paper check volumes, generally, and the decline in paper 
checks sent to the Reserve Banks for collection have significantly 
reduced the need for Federal Reserve check-processing locations and the 
ability of Reserve Banks to recover the costs of maintaining those 
locations. In order to achieve the Monetary Control Act requirement of 
long-run full cost recovery, the Reserve Banks have adjusted their 
check service infrastructure to reduce the number of check-processing 
regions. In light of the fact that the Reserve Banks are receiving a 
high percentage of checks electronically, the consolidation of check 
processing centers and the accompanying amendments to Appendix A of 
Regulation CC are required by law. As a result of the consolidation of 
Federal Reserve check-processing offices, amendments to Appendix A are 
necessary because the statutory and regulatory terms ``local'' and 
``nonlocal'' are defined in terms of ``check-processing regions''--the 
geographic areas served by a Federal Reserve check-processing office.
    In addition, the Board finds, in accordance with APA section 
553(d), good cause for making the amendments to Appendix A relating to 
the transfer of check-processing operations from Philadelphia to 
Cleveland effective without 30 days advance publication. On October 14, 
2009, the Federal Reserve Banks, by letter, informed depository 
institutions within Philadelphia's check-processing region of the 
December 12 transfer of check-

[[Page 58538]]

processing operations from Philadelphia to Cleveland. That letter was 
then published on the Federal Reserve Financial Services' website. 
Accordingly, the affected depository institutions are aware of and 
making preparations for the transfer of paper check-processing 
operations from Philadelphia to Cleveland.

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 amendments to appendix A of Regulation CC 
will delete the reference to the head office of the Federal Reserve 
Bank of Philadelphia 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

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. In appendix A, remove introductory paragraph C and the headings and 
listings for the Third Federal Reserve District, and revise the listing 
for the Fourth Federal Reserve District 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

 
 
 
             \1\ 0110                                 2110
                 0111                                 2111
                 0112                                 2112
                 0113                                 2113
                 0114                                 2114
                 0115                                 2115
                 0116                                 2116
                 0117                                 2117
                 0118                                 2118
                 0119                                 2119
                 0210                                 2210
                 0211                                 2211
                 0212                                 2212
                 0213                                 2213
                 0214                                 2214
                 0215                                 2215
                 0216                                 2216
                 0219                                 2219
                 0220                                 2220
                 0223                                 2223
                 0260                                 2260
                 0280                                 2280
                 0310                                 2310
                 0311                                 2311
                 0312                                 2312
                 0313                                 2313
                 0319                                 2319
                 0360                                 2360
                 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
                 0510                                 2510
                 0514                                 2514
                 0515                                 2515
                 0519                                 2519
                 0520                                 2520
                 0521                                 2521
                 0522                                 2522
                 0540                                 2540
                 0550                                 2550
                 0560                                 2560
                 0570                                 2570
                 0710                                 2710
                 0711                                 2711
                 0712                                 2712
                 0719                                 2719
                 0720                                 2720
                 0724                                 2724
                 0730                                 2730
                 0739                                 2739
                 0740                                 2740
                 0749                                 2749
                 0750                                 2750
                 0759                                 2759
                 0813                                 2813
                 0830                                 2830
                 0839                                 2839
                 0863                                 2863
                 0910                                 2910
                 0911                                 2911
                 0912                                 2912
                 0913                                 2913
                 0914                                 2914
                 0915                                 2915
                 0918                                 2918
                 0919                                 2919
                 0920                                 2920
                 0921                                 2921
                 0929                                 2929
                 0960                                 2960
                 1010                                 3010
                 1011                                 3011
                 1012                                 3012
                 1019                                 3019
                 1020                                 3020
                 1021                                 3021
                 1022                                 3022
                 1023                                 3023
                 1030                                 3030
                 1031                                 3031
                 1039                                 3039
                 1040                                 3040
                 1041                                 3041
                 1049                                 3049
                 1070                                 3070
                 1110                                 3110
                 1111                                 3111
                 1113                                 3113
                 1119                                 3119
                 1120                                 3120
                 1122                                 3122
                 1123                                 3123
                 1130                                 3130
                 1131                                 3131
                 1140                                 3140
                 1149                                 3149
                 1163                                 3163
                 1210                                 3210
                 1211                                 3211
                 1212                                 3212
                 1213                                 3213
                 1220                                 3220
                 1221                                 3221
                 1222                                 3222
                 1223                                 3223
                 1224                                 3224
                 1230                                 3230
                 1231                                 3231
                 1232                                 3232
                 1233                                 3233
                 1240                                 3240
                 1241                                 3241
                 1242                                 3242
                 1243                                 3243
                 1250                                 3250
                 1251                                 3251
                 1252                                 3252
 
\1\ The first two digits identify the bank's Federal Reserve District.
  For example, 01 identifies the First Federal Reserve District
  (Boston), and 12 identifies the Twelfth District (San Francisco).
  Adding 2 to the first digit denotes a thrift institution. For example,
  21 identifies a thrift in the First District, and 32 denotes a thrift
  in the Twelfth District.

* * * * *


    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, November 6, 2009.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E9-27189 Filed 11-12-09; 8:45 am]
BILLING CODE 6210-01-P