[Federal Register Volume 59, Number 184 (Friday, September 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23556]
[[Page Unknown]]
[Federal Register: September 23, 1994]
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FEDERAL RESERVE SYSTEM
12 CFR Part 229
[Regulation CC; Docket No. R-0847]
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 is publishing technical amendments to Appendices A
and B-2 of Regulation CC. The amendments will conform Appendix A to a
realignment in Federal Reserve check processing regions by adding the
routing numbers formerly assigned to the Buffalo check processing
region to the Utica check processing region. The amendments will also
make other minor corrections to headings in Appendices A and B-2.
EFFECTIVE DATE: October 11, 1994.
FOR FURTHER INFORMATION CONTACT: Oliver Ireland, Associate General
Counsel (202/452-3625), or Stephanie Martin, Senior Attorney (202/452-
3198), Legal Division. For the hearing impaired only:
Telecommunications Device for the Deaf, Dorothea Thompson (202/452-
3544).
SUPPLEMENTARY INFORMATION: The Board's Regulation CC (12 CFR part 229)
implements the Expedited Funds Availability Act (12 U.S.C. 4001 et
seq.) and requires banks\1\ to make funds deposited into transaction
accounts available for withdrawal within specified time frames. The Act
and regulation allow banks to place longer holds on nonlocal checks
than on local checks. A nonlocal check is one for which the paying
bank\2\ is located in a different check processing region than the
depositary bank. Regulation CC defines ``check processing region'' as
``the geographical area served by an office of a Federal Reserve Bank
for purposes of its check-processing activities.''\3\ Appendix A to
Regulation CC lists the Federal Reserve check processing offices and
the 4-digit routing number prefixes that are local to each office.
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\1\The term bank refers to any depository institution, including
commercial banks, savings institutions, and credit unions.
\2\The paying bank is the bank by, at, or through which a check
is payable. The depositary bank is the first bank to which a check
is transferred.
\3\12 CFR 229.2(m). The Act's definition is substantially
similar (12 U.S.C. 4001(9)).
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Effective October 11, 1994, the Federal Reserve Bank of New York
will discontinue check processing at its Buffalo office and incorporate
the Buffalo check processing region into the Utica check processing
region. This consolidation is part of a larger effort by the Federal
Reserve Bank of New York to achieve greater efficiency and cost savings
in its check operations by consolidating systems, equipment, and
operations. (In 1992 the Federal Reserve Bank of New York transferred
its head office check processing operations to its Jericho office. The
Board made corresponding changes to Appendix A of Regulation CC at that
time. 58 FR 2, January 4, 1993.) Accordingly, the Board has amended the
routing number list in Appendix A to reflect the Buffalo-Utica
consolidation. The Board has also corrected mislabeled headings in
Appendices A and B-2.
Although the substance of Regulation CC will be unaffected by the
amendment to Appendix A, the consolidation of check processing regions
may require some banks to adjust their internal procedures. For
example, checks deposited in the former Buffalo region will now be
considered local checks in the Utica region (and vice versa). Banks
that now distinguish between the Buffalo and Utica regions in assigning
availability will need to realign their internal operating systems to
reflect the consolidation. In addition, banks in the former Buffalo
region, now part of the Utica region, will be subject to the reduction
of schedules for certain nonlocal checks, as listed in Appendix B-2.\4\
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\4\Specifically, Appendix B-2 provides that nonlocal checks
deposited in the Utica region bearing the 4-digit routing number
prefixes ``0210'' and ``0280'' must be made available for withdrawal
by the third business day following the banking day on which the
checks were deposited.
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Banks also need to reflect any availability policy changes in their
disclosures, as the availability for certain checks may be improved.
Section 229.18(e) of Regulation CC provides that, in the case of an
availability policy change that expedites the availability of funds, a
bank shall send a notice of the change to holders of consumer accounts
not later than 30 days after implementation.
The amendments adopted by the Board are technical amendments that
reflect the realignment of Federal Reserve check processing regions and
are required by the statutory and regulatory definitions of ``check
processing region.''
Accordingly, 5 U.S.C. 553(b), requiring public comment, and 5
U.S.C. 553(d), requiring a delayed effective date, do not apply.
Final Regulatory Flexibility Analysis
The amendment will apply to all banks, regardless of size. There is
no possible alternative rule for small banks, as ``check processing
region'' is defined by the Expedited Funds Availability Act, which
applies to all banks. The amendment will affect only those banks in the
current Buffalo and Utica check processing regions that distinguish
between checks drawn on paying banks located in those two regions for
purposes of assigning availability. The Board expects that the majority
of small institutions located in those two regions will be unaffected
by the amendment.
List of Subjects in 12 CFR Part 229
Banks, banking, Federal Reserve System, Reporting and recordkeeping
requirements.
For the reasons set out in the preamble, 12 CFR part 229 is amended
as follows:
PART 229--[AMENDED]
1. The authority citation for part 229 continues to read as
follows:
Authority: 12 U.S.C. 4001 et seq.
Appendix A to Part 229 [Amended]
2. In Appendix A to part 229, under the heading ``SECOND FEDERAL
RESERVE DISTRICT,'' the numbers appearing directly under the subheading
``Buffalo Branch'' are transferred in numerical order under the
subheading ``Utica Office'', the subheading ``Buffalo Branch'' is
removed, and the subheading ``Cranford Office'' is revised to read
``East Rutherford Office''.
Appendix B-2 to Part 229 [Amended]
3. In Appendix B-2 to part 229, the subheading ``Cranford'' is
revised to read ``East Rutherford''.
By order of the Board of Governors of the Federal Reserve
System, September 19, 1994.
William W. Wiles,
Secretary of the Board.
[FR Doc. 94-23556 Filed 9-22-94; 8:45 am]
BILLING CODE 6210-01-P
