E9-12925. Availability of Funds and Collection of Checks  

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    AGENCY:

    Board of Governors of the Federal Reserve System.

    ACTION:

    Final rule; technical amendment.

    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 Minneapolis 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 July 25, 2009.

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    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.

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    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 Start Printed Page 26516generally 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 July 25, 2009, the Reserve Banks will transfer the check-processing operations of the head office of the Federal Reserve Bank of Minneapolis 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 Minneapolis 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 Minneapolis and Cleveland to reflect the transfer of check-processing operations from the head office of the Federal Reserve Bank of Minneapolis 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 July 25, 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]

    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 section 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 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 Minneapolis 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.

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    List of Subjects in 12 CFR Part 229

    • Banks
    • Banking
    • Reporting and recordkeeping requirements
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    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:

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    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:

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

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    2. The Fourth and Ninth District routing symbol lists in appendix A are amended by removing the headings and listings for the Ninth Federal Reserve District and revising the listings for the Fourth Federal Reserve Districts to read as follows:

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

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    Fourth Federal Reserve District

    [Federal Reserve Bank of Cleveland]

    Head Office

    02202220
    02232223
    04102410
    04122412
    04202420
    04212421
    04222422
    04232423
    04302430
    04322432
    04332433
    04342434
    04402440
    04412441
    04422442
    05152515
    05192519
    07202720
    07242724
    07402740
    07492749
    08132813
    08302830
    08392839
    08632863
    09102910
    09112911
    09122912
    09132913
    09142914
    09152915
    09182918
    09192919
    09602960
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    By order of the Board of Governors of the Federal Reserve System, May 27, 2009.

    Robert deV. Frierson,

    Deputy Secretary of the Board.

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    Footnotes

    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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    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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    [FR Doc. E9-12925 Filed 6-2-09; 8:45 am]

    BILLING CODE 6210-01-P

Document Information

Comments Received:
0 Comments
Effective Date:
7/25/2009
Published:
06/03/2009
Department:
Federal Reserve System
Entry Type:
Rule
Action:
Final rule; technical amendment.
Document Number:
E9-12925
Dates:
The final rule will become effective on July 25, 2009.
Pages:
26515-26516 (2 pages)
Docket Numbers:
Regulation CC, Docket No. R-1358
Topics:
Banks, banking, Banks, banking, Banks, banking, Banks, banking, Reporting and recordkeeping requirements
PDF File:
e9-12925.pdf
CFR: (1)
12 CFR 229