[Federal Register Volume 75, Number 2 (Tuesday, January 5, 2010)]
[Rules and Regulations]
[Pages 219-221]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-31254]



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 Rules and Regulations
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  Federal Register / Vol. 75, No. 2 / Tuesday, January 5, 2010 / Rules 
and Regulations  

[[Page 219]]



FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1382]


Availability of Funds and Collection of Checks

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule.

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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 Atlanta 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. 
Subsequent to these amendments, there will only be a single check-
processing region for purposes of Regulation CC and there will no 
longer be any checks that are nonlocal.

DATES: The final rule will become effective on February 27, 2010.

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 February 27, 2010, the Reserve Banks will transfer the check-
processing operations of the head office of the Federal Reserve Bank of 
Atlanta 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 Atlanta 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 Atlanta and Cleveland to reflect the transfer 
of check-processing operations from the head office of the Federal 
Reserve Bank of Atlanta 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 
February 27, 2010. At that time, there will only be a single check-
processing region for purposes of Regulation CC and there will no 
longer be any checks that are nonlocal. 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 is required in order to meet the mandate of the 
Monetary Control Act. 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.

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

[[Page 220]]

amendments to appendix A of Regulation CC will delete the reference to 
the head office of the Federal Reserve Bank of Atlanta 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, the Fourth and Sixth District routing symbol lists 
are amended by removing the headings and listings for the Sixth Federal 
Reserve District and revising the listings 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

               0110 \1\                                 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
                   0530                                 2530
                   0531                                 2531
                   0532                                 2532
                   0539                                 2539
                   0540                                 2540
                   0550                                 2550
                   0560                                 2560
                   0570                                 2570
                   0610                                 2610
                   0611                                 2611
                   0612                                 2612
                   0613                                 2613
                   0620                                 2620
                   0621                                 2621
                   0622                                 2622
                   0630                                 2630
                   0631                                 2631
                   0632                                 2632
                   0640                                 2640
                   0641                                 2641
                   0642                                 2642
                   0650                                 2650
                   0651                                 2651
                   0652                                 2652
                   0653                                 2653
                   0654                                 2654
                   0655                                 2655
                   0660                                 2660
                   0670                                 2670
                   0710                                 2710
                   0711                                 2711
                   0712                                 2712
                   0719                                 2719
                   0720                                 2720
                   0724                                 2724
                   0730                                 2730
                   0739                                 2739
                   0740                                 2740
                   0749                                 2749
                   0750                                 2750
                   0759                                 2759
                   0810                                 2810
                   0812                                 2812
                   0813                                 2813
                   0815                                 2815
                   0819                                 2819
                   0820                                 2820
                   0829                                 2829
                   0830                                 2830
                   0839                                 2839
                   0840                                 2840
                   0841                                 2841
                   0842                                 2842
                   0843                                 2843
                   0863                                 2863
                   0865                                 2865
                   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

[[Page 221]]

 
                   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 l2 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, December 30, 2009.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E9-31254 Filed 1-4-10; 8:45 am]
BILLING CODE 6210-01-P