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Start Preamble
Start Printed Page 219
AGENCY:
Board of Governors of the Federal Reserve System.
ACTION:
Final rule.
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.
Start Further InfoFOR 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.
End Further Info End Preamble Start Supplemental InformationSUPPLEMENTARY 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.
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]
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 Start Printed Page 220amendments 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 § 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.
Start List of SubjectsList of Subjects in 12 CFR Part 229
- Banks
- Banking
- Reporting and recordkeeping requirements
Authority and Issuance
Start Amendment PartFor the reasons set forth in the preamble, the Board is amending 12 CFR part 229 to read as follows:
End Amendment Part Start PartPART 229—AVAILABILITY OF FUNDS AND COLLECTION OF CHECKS (REGULATION CC)
End Part Start Amendment Part1. The authority citation for part 229 continues to read as follows:
End Amendment Part Start Amendment Part2. 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:
End Amendment Part Start AppendixAppendix 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 Start Printed 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. * * * * *End Appendix Start SignatureEnd Signature End Supplemental InformationBy 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.
Footnotes
1. For purposes of Regulation CC, the term “bank” refers to any depository institution, including commercial banks, savings institutions, and credit unions.
Back to Citation2. 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.
Back to Citation[FR Doc. E9-31254 Filed 1-4-10; 8:45 am]
BILLING CODE 6210-01-P
Document Information
- Comments Received:
- 0 Comments
- Effective Date:
- 2/27/2010
- Published:
- 01/05/2010
- Department:
- Federal Reserve System
- Entry Type:
- Rule
- Action:
- Final rule.
- Document Number:
- E9-31254
- Dates:
- The final rule will become effective on February 27, 2010.
- Pages:
- 219-221 (3 pages)
- Docket Numbers:
- Regulation CC, Docket No. R-1382
- Topics:
- Banks, banking, Banks, banking, Banks, banking, Banks, banking, Reporting and recordkeeping requirements
- PDF File:
- e9-31254.pdf
- CFR: (1)
- 12 CFR 229