Agency Information Collection Activities: Proposed Collection; Comment Request, 24581-24583 [05-9318]
Download as PDF
<![CDATA[
Federal Register / Vol. 70, No. 89 / Tuesday, May 10, 2005 / Notices
concept of independence implies. In such
difficult matters, for example, as the
determination of the scope of audit
necessary, existence of such an agreement
may easily lead to the use of less extensive
or thorough procedures than would
otherwise be followed. In other cases it may
result in a failure to appraise with
professional acumen the information
disclosed by the examination. Consequently,
the accountant cannot be recognized as
independent for the purpose of certifying the
financial statements of the corporation.
(Emphasis added.)
U.S. Securities and Exchange Commission;
Office of the Chief Accountant: Application
of the Commission’s Rules on Auditor
Independence Frequently Asked Questions;
Other Matters—Question 4 (Issued December
13, 2004):
Q: Has there been any change in the
Commission’s long standing view (Financial
Reporting Policies—Section 600—602.02.f.i.
‘‘Indemnification by Client’’) that when an
accountant enters into an indemnity
agreement with the registrant, his or her
independence would come into question?
A: No. When an accountant and his or her
client, directly or through an affiliate, enter
into an agreement of indemnity which seeks
to provide the accountant immunity from
liability for his or her own negligent acts,
whether of omission or commission, the
accountant is not independent. Further,
including in engagement letters a clause that
a registrant would release, indemnify or hold
harmless from any liability and costs
resulting from knowing misrepresentations
by management would also impair the firm’s
independence. (Emphasis added.)
Dated: May 4, 2005.
Tamara J. Wiseman,
Executive Secretary, Federal Financial
Institutions Examination Council.
[FR Doc. 05–9298 Filed 5–9–05; 8:45 am]
BILLING CODE 6720–01–P, 6210–01,–P, 6714–01–P,
7535–01–P, 4810–33–P
FEDERAL MARITIME COMMISSION
Controlled Carriers Under The
Shipping Act of 1984
Federal Maritime Commission.
Notice.
AGENCY:
ACTION:
The Federal Maritime
Commission is publishing an updated
list of controlled carriers, i.e., ocean
common carriers operating in U.S.foreign trades that are owned or
controlled by foreign governments. Such
carriers are subject to special regulatory
oversight by the Commission under the
Shipping Act of 1984.
FOR FURTHER INFORMATION CONTACT:
Amy W. Larson, General Counsel,
Federal Maritime Commission, 800
North Capitol Street, NW., Washington,
DC 20573. (202) 523–5740.
SUMMARY:
VerDate jul<14>2003
16:17 May 09, 2005
Jkt 205001
The
Federal Maritime Commission is
publishing an updated list of controlled
carriers. Section 3(8) of the Shipping
Act of 1984 (‘‘Act’’), 46 U.S.C. app.
1702(3), defines a ‘‘controlled carrier’’
as:
SUPPLEMENTARY INFORMATION:
An ocean common carrier that is, or whose
operating assets are, directly or indirectly,
owned or controlled by a government;
ownership or control by a government shall
be deemed to exist with respect to any carrier
if—
(A) a majority portion of the interest in the
carrier is owned or controlled in any manner
by that government, by any agency thereof,
or by any public or private person controlled
by that government; or
(B) that government has the right to
appoint or disapprove the appointment of a
majority of the directors, the chief operating
officer, or the chief executive officer of the
carrier.
As required by the Shipping Act,
controlled carriers are subject to special
oversight by the Commission. Section
9(a) of the Act, 46 U.S.C. app. 1708(a),
states, in part:
No controlled carrier subject to this section
may maintain rates or charges in its tariffs or
service contracts, or charge or assess rates,
that are below a level that is just and
reasonable, nor may any such carrier
establish, maintain, or enforce unjust or
unreasonable classifications, rules, or
regulations in those tariffs or service
contracts. An unjust or unreasonable
classification, rule, or regulation means one
that results or is likely to result in the
carriage or handling of cargo at rates or
charges that are below a just and reasonable
level. The Commission may, at any time after
notice and hearing, prohibit the publication
or use of any rates, charges, classifications,
rules, or regulations that the controlled
carrier has failed to demonstrate to be just
and reasonable.
Congress enacted these protections to
ensure that controlled carriers, whose
marketplace decision making can be
influenced by foreign governmental
priorities or by their access to nonmarket sources of capital, do not engage
in unreasonable below-market pricing
practices which could disrupt trade or
harm privately-owned shipping
companies.
The controlled carrier list is not a
comprehensive list of foreign-owned or
-controlled ships or shipowners; rather,
it is only a list of ocean common carriers
(as defined in section 3(16) of the Act)
that are owned or controlled by
governments. Thus, tramp operators and
other non-common carriers are not
included, nor are non-vessel-operating
common carriers, regardless of their
ownership or control.
Since the last publication of this list
on June 9, 2003 (68 FR 34388), the
Commission has newly classified two
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
24581
ocean common carriers as controlled
carriers. On September 27, 2004,
American President Lines, Ltd. and APL
Co. Pte, Ltd. (one ocean common carrier
designated ‘‘APL’’) was classified as a
carrier controlled by the Government of
the Republic of Singapore (‘‘GOS’’). The
majority ownership of APL’s parent
company, Neptune Orient Lines
(‘‘NOL’’) had been purchased by a GOS
controlled holding company. On
November 29, 2004, the Commission
classified China Shipping (Hong Kong),
Ltd. (‘‘CSHK’’) as a carrier controlled by
the Government of the People’s
Republic of China. CSHK was a new
entrant in the U.S.-foreign trades.
Neither APL nor CSHK raised any
objections to these classifications.
It is requested that any other
information regarding possible
omissions or inaccuracies in this list be
provided to the Commission’s Office of
the General Counsel. See 46 CFR 501.23.
The amended list of currently classified
controlled carriers and their
corresponding Commission-issued
Registered Persons Index numbers is set
forth below:
(1) American President Lines, Ltd and
APL Co., Pte. (RPI No. 000240)—
Republic of Singapore;
(2) Ceylon Shipping Corporation (RPI
No. 016589)—Democratic Socialist
Republic of Sri Lanka;
(3) COSCO Container Lines Company,
Limited (RPI No. 015614)—People’s
Republic of China;
(4) China Shipping Container Lines Co.,
Ltd. (RPI No. 016435)—People’s
Republic of China;
(5) China Shipping Container Lines
(Hong Kong) Company, Ltd. (RPI No.
019269)—People’s Republic of China;
(6) Compagnie Nationale Algerienne de
Navigation (RPI No. 000787)—
People’s Democratic Republic of
Algeria;
(7) Sinotrans Container Lines Co., Ltd.
(d/b/a Sinolines)(RPI No. 017703)—
People’s Republic of China;
(8) Shipping Corporation of India Ltd.,
The (RPI No. 001141)—Republic of
India.
By the Commission.
Bryant L. VanBrakle,
Secretary.
[FR Doc. 05–9322 Filed 5–9–05; 8:45 am]
BILLING CODE 6730–01–P
FEDERAL RESERVE SYSTEM
Agency Information Collection
Activities: Proposed Collection;
Comment Request
Board of Governors of the
Federal Reserve System.
AGENCY:
E:\FR\FM\10MYN1.SGM
10MYN1
24582
Federal Register / Vol. 70, No. 89 / Tuesday, May 10, 2005 / Notices
SUMMARY:
Background
On June 15, 1984, the Office of
Management and Budget (OMB)
delegated to the Board of Governors of
the Federal Reserve System (Board) its
authority under the Paperwork
Reduction Act, as per 5 CFR 1320.16, to
approve of and assign OMB control
numbers to collection of information
requests and requirements conducted or
sponsored by the Board under
conditions set forth in 5 CFR part 1320
Appendix A.1. Board-approved
collections of information are
incorporated into the official OMB
inventory of currently approved
collections of information. Copies of the
OMB 83–Is and supporting statements
and approved collection of information
instruments are placed into OMB’s
public docket files. The Federal Reserve
may not conduct or sponsor, and the
respondent is not required to respond
to, an information collection that has
been extended, revised, or implemented
on or after October 1, 1995, unless it
displays a currently valid OMB control
number.
Request for Comment on Information
Collection Proposal
The following information collection,
which is being handled under this
delegated authority, has received initial
Board approval and is hereby published
for comment. At the end of the comment
period, the proposed information
collection, along with an analysis of
comments and recommendations
received, will be submitted to the Board
for final approval under OMB delegated
authority. Comments are invited on the
following:
a. Whether the proposed collection of
information is necessary for the proper
performance of the Federal Reserve’s
functions; including whether the
information has practical utility;
b. The accuracy of the Federal
Reserve’s estimate of the burden of the
proposed information collection,
including the validity of the
methodology and assumptions used;
c. Ways to enhance the quality,
utility, and clarity of the information to
be collected; and
d. Ways to minimize the burden of
information collection on respondents,
including through the use of automated
collection techniques or other forms of
information technology.
DATES: Comments must be submitted on
or before July 11, 2005.
ADDRESSES: You may submit comments,
identified by FR 3080, by any of the
following methods:
VerDate jul<14>2003
16:17 May 09, 2005
Jkt 205001
• Agency Web site: https://
www.federalreserve.gov. Follow the
instructions for submitting comments at
https://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail:
regs.comments@federalreserve.gov.
Include docket number in the subject
line of the message.
• FAX: 202/452–3819 or 202/452–
3102.
• Mail: Jennifer J. Johnson, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue, NW., Washington,
DC 20551.
All public comments are available from
the Board’s Web site at https://
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm as submitted,
except as necessary for technical
reasons. Accordingly, your comments
will not be edited to remove any
identifying or contact information.
Public comments may also be viewed
electronically or in paper in Room MP–
500 of the Board’s Martin Building (20th
and C Streets, NW.) between 9 a.m. and
5 p.m. on weekdays.
FOR FURTHER INFORMATION CONTACT: A
copy of the proposed form and
instructions, the Paperwork Reduction
Act Submission (OMB 83–I), supporting
statement, and other documents that
will be placed into OMB’s public docket
files once approved may be requested
from the agency clearance officer, whose
name appears below.
Michelle Long, Federal Reserve Board
Clearance Officer (202–452–3829),
Division of Research and Statistics,
Board of Governors of the Federal
Reserve System, Washington, DC 20551.
Telecommunications Device for the Deaf
(TDD) users may contact (202–263–
4869), Board of Governors of the Federal
Reserve System, Washington, DC 20551.
For further information regarding the
purpose and content of the proposed
survey contact Jack Walton, Associate
Director (202–452–2660), Jeffrey
Yeganeh, Manager (202–728–5801), or
Susan Foley, Project Leader (202–452–
3596), Retail Payments Section, Division
of Reserve Bank Operations and
Payment Systems.
Proposal to conduct under OMB
delegated authority the following
survey:
Report title: Check 21 Act Survey.
Agency form number: FR 3080.
OMB control number: 7100–0279.
Frequency: Once.
Reporters: Depository institutions.
Annual reporting hours: 15,000 hours.
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
Estimated average hours per response:
10 hours.
Number of respondents: 1,500.
General description of report: This
information collection is voluntary (12
U.S.C. 5015) and may be accorded
confidential treatment under the
Freedom of Information Act (5 U.S.C.
552 (b)(4)).
Abstract: Section 16 of the Check 21
Act requires the Federal Reserve to
study the implementation of the law
and its effect on various aspects of
check processing, including funds
availability, and to report the results of
the study to Congress by April 28,
2007.1 Specifically, Congress directed
the Federal Reserve to study and report
to Congress on:
(1) The percentage of total checks
cleared in which the paper check is not
returned to the paying bank;
(2) The extent to which banks make
funds available to consumers for local
and nonlocal checks prior to the
expiration of maximum hold periods;
(3) The length of time within which
depositary banks learn of the
nonpayment of local and nonlocal
checks;
(4) The increase or decrease in checkrelated losses over the study period; and
(5) The appropriateness of the time
periods and amount limits applicable
under sections 603 and 604 of the
Expedited Funds Availability Act, as in
effect on the date of enactment of the
Check 21 Act.
To fully address the issues raised by
Congress, the Federal Reserve believes it
is necessary to conduct a broad-based
survey to ensure the accurate
characterization of the nation’s evolving
check processing system, and the
Federal Reserve is hereby publishing for
comment a draft survey to gather data
from a nationally representative sample
of depository institutions, including
commercial banks, savings institutions,
and credit unions.
Further, the availability for
withdrawal of funds deposited by check
is governed by the Federal Reserve’s
Regulation CC, which implements the
Expedited Funds Availability Act
(EFAA). EFAA and Regulation CC set
maximum permissible hold periods for
checks deposited into transaction
accounts at depository institutions.
EFAA directs the Federal Reserve to
reduce the statutory funds availability
schedules as the check clearing system
improves, while also ensuring that the
reduced schedules provide depositary
banks a reasonable opportunity to learn
1 The Check 21 Act also directs the Board to
include in its report to Congress any
recommendations for legislative action.
E:\FR\FM\10MYN1.SGM
10MYN1
Federal Register / Vol. 70, No. 89 / Tuesday, May 10, 2005 / Notices
of the nonpayment of most checks in
each category (such as ‘‘nonlocal’’
checks and ‘‘local’’ checks). The results
of the proposed survey would be used
to determine whether reducing the hold
periods in Regulation CC is warranted.
The proposed survey would consist of
five sections. Section I would collect
general information on the depository
institution, such as name, address, and
contact person.
Section II consists of seven questions
on respondents’ losses and recoveries
related to check fraud. In its role as bank
of first deposit and as paying bank, an
institution would be asked to provide
the value and number of check losses
incurred in 2005, as well as the value
and number of cases associated with
recoveries received in 2005 from check
losses. As bank of first deposit,
institutions would be asked to provide
information on their losses by category,
such as the origin of the check (e.g.,
local or non-local), whether the check
was dishonored versus subject to a
warranty claim, and the age of the
account. As paying bank, institutions
would be asked to provide their losses
by presentment method (original
checks, substitute checks, or checks
presented electronically). Both the
dollar value and the number of cases
would be reported. The respondent also
would be asked to compare its check
losses in 2005 with its check losses in
2004. Section II questions are in
response to study requirements 4 and 5.
Section III consists of two questions
on the volume of checks, for cases
where the institution was the paying
bank and for cases where the institution
was the bank of first deposit. The
institution would be asked to provide
the total number and value of checks
presented to it in a calendar month,
categorized by presentment method
(original checks, substitute checks, or
checks presented electronically). The
institution also would be asked to
provide the total number and value of
checks deposited at the institution as
the bank of first deposit during the same
calendar month, categorized by origin of
the check. Section III questions are in
response to study requirement 1.
Section IV consists of five questions
on the institution’s funds availability
policies and practices for next-day
availability, local, and nonlocal checks.
The institution would be asked to
provide its number of transaction
accounts and the percentage of these
accounts held by consumers. The
institution would also be asked to
indicate its published funds availability
policy, including the percentage of
consumer transaction accounts for
which the policy permits hold
VerDate jul<14>2003
16:17 May 09, 2005
Jkt 205001
extensions on a case-by-case basis, and
to specify what changes (if any) it has
made to its policy in the past two years.
The institution would be asked to
indicate its funds availability practices
for deposits that do not qualify as
exception holds under Regulation CC.
Finally, institutions would be asked for
the percentage of check deposits subject
to Regulation CC exception holds that
receive later availability than the
Regulation CC permitted holds for nextday availability, local, and nonlocal
checks. Section IV questions are in
response to study requirement 2.
Section V consists of three questions
addressing the institution’s experiences
with returned checks. The institution
would be asked to specify the number
of business days within which it
receives local and nonlocal checks that
have been returned unpaid by the
paying bank. Two questions request
data on notifications and procedures
regarding large-dollar returned checks.
Section V questions are in response to
study requirement 3.
The Federal Reserve will accept
comments on all aspects of the proposed
survey. In general, the Federal Reserve
requests comment on how the survey
might be modified to improve its
responsiveness to the requirements of
section 16 of the Check 21 Act, while
also enabling depository institutions to
respond to the survey with reasonable
burden. More specifically, the Federal
Reserve requests comments on the
following. To what extent are
institutions, in their role as banks of
first deposit, able to categorize check
losses by local and non-local checks
(proposed question 2.2)? To what extent
are institutions, in their role as paying
banks, able to categorize check losses by
presentment method (proposed question
2.6)? How might questions 4.2 and 4.4
be restructured to better capture the
frequency with which institutions make
funds available sooner than Regulation
CC requires? Do the options listed under
question 4.3(d) capture the reasons why
institutions might have changed their
funds availability policies in the past
two years? And, finally, do institutions
typically track check losses by check or
by case (which may involve one or more
checks)? The proposed survey is
available electronically at https://
www.federalreserve.gov/boarddocs/
reportforms/review.cfm.
Board of Governors of the Federal Reserve
System, May 5, 2005.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 05–9318 Filed 5–9–05; 8:45 am]
BILLING CODE 6210–01–P
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
24583
FEDERAL TRADE COMMISSION
Notice of Agency Information
Collection Activities Regarding a Pilot
Study Pursuant to Section 319 of the
Fair and Accurate Credit Transactions
Act of 2003
Federal Trade Commission.
Notice and request for comment.
AGENCY:
ACTION:
SUMMARY: The information collection
requirements described below have
been submitted to the Office of
Management and Budget (‘‘OMB’’) for
review, as required by the Paperwork
Reduction Act (‘‘PRA’’). The Federal
Trade Commission (the ‘‘Commission’’
or ‘‘FTC’’) is seeking public comments
on its proposal to conduct a pilot study
in connection with Section 319 of the
Fair and Accurate Credit Transactions
Act of 2003 (‘‘FACT Act’’ or the ‘‘Act’’).
DATES: Public comments must be
received on or before June 9, 2005.
ADDRESSES: Comments should refer to
the ‘‘Accuracy Pilot Study: Paperwork
Comment (FTC file no. P044804)’’ to
facilitate the organization of the
comments. A comment filed in paper
form should include this reference both
in the text and on the envelope, and
should be mailed or delivered to the
following address: Federal Trade
Commission/Office of the Secretary,
Room H–159 (Annex Y), 600
Pennsylvania Avenue, NW.,
Washington, DC 20580. Comments
containing confidential material must be
filed in paper (rather than electronic)
form, and the first page of the document
must be clearly labeled ‘‘Confidential.’’ 1
The FTC is requesting that any comment
filed in paper form be sent by courier or
overnight service, if possible, because
U.S. postal mail in the Washington area
and at the Commission is subject to
delay due to heightened security
precautions. Comments filed in
electronic form (except comments
containing any confidential material)
should be sent to the following e-mail
box: AccuracyPilotStudy@ftc.gov.
All comments should additionally be
submitted to: Office of Management and
Budget, Attention: Desk Officer for the
Federal Trade Commission. Comments
should be submitted via facsimile to
(202) 395–6974 because U.S. Postal Mail
1 Commission Rule 4.2(d), 16 CFR 4.2(d). The
comment must be accompanied by an explicit
request for confidential treatment, including the
factual and legal basis for the request, and must
identify the specific portions of the comment to be
withheld from the public record. The request will
be granted or denied by the Commission’s General
Counsel, consistent with applicable law and the
public interest. See Commission Rule 4.9(c), 16 CFR
4.9(c).
E:\FR\FM\10MYN1.SGM
10MYN1
]]>Agencies
[Federal Register Volume 70, Number 89 (Tuesday, May 10, 2005)]
[Notices]
[Pages 24581-24583]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-9318]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Proposed Collection;
Comment Request
AGENCY: Board of Governors of the Federal Reserve System.
[[Page 24582]]
SUMMARY:
Background
On June 15, 1984, the Office of Management and Budget (OMB)
delegated to the Board of Governors of the Federal Reserve System
(Board) its authority under the Paperwork Reduction Act, as per 5 CFR
1320.16, to approve of and assign OMB control numbers to collection of
information requests and requirements conducted or sponsored by the
Board under conditions set forth in 5 CFR part 1320 Appendix A.1.
Board-approved collections of information are incorporated into the
official OMB inventory of currently approved collections of
information. Copies of the OMB 83-Is and supporting statements and
approved collection of information instruments are placed into OMB's
public docket files. The Federal Reserve may not conduct or sponsor,
and the respondent is not required to respond to, an information
collection that has been extended, revised, or implemented on or after
October 1, 1995, unless it displays a currently valid OMB control
number.
Request for Comment on Information Collection Proposal
The following information collection, which is being handled under
this delegated authority, has received initial Board approval and is
hereby published for comment. At the end of the comment period, the
proposed information collection, along with an analysis of comments and
recommendations received, will be submitted to the Board for final
approval under OMB delegated authority. Comments are invited on the
following:
a. Whether the proposed collection of information is necessary for
the proper performance of the Federal Reserve's functions; including
whether the information has practical utility;
b. The accuracy of the Federal Reserve's estimate of the burden of
the proposed information collection, including the validity of the
methodology and assumptions used;
c. Ways to enhance the quality, utility, and clarity of the
information to be collected; and
d. Ways to minimize the burden of information collection on
respondents, including through the use of automated collection
techniques or other forms of information technology.
DATES: Comments must be submitted on or before July 11, 2005.
ADDRESSES: You may submit comments, identified by FR 3080, by any of
the following methods:
Agency Web site: https://www.federalreserve.gov. Follow the
instructions for submitting comments at https://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: regs.comments@federalreserve.gov. Include docket
number in the subject line of the message.
FAX: 202/452-3819 or 202/452-3102.
Mail: Jennifer J. Johnson, Secretary, Board of Governors
of the Federal Reserve System, 20th Street and Constitution Avenue,
NW., Washington, DC 20551.
All public comments are available from the Board's Web site at https://
www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted,
except as necessary for technical reasons. Accordingly, your comments
will not be edited to remove any identifying or contact information.
Public comments may also be viewed electronically or in paper in Room
MP-500 of the Board's Martin Building (20th and C Streets, NW.) between
9 a.m. and 5 p.m. on weekdays.
FOR FURTHER INFORMATION CONTACT: A copy of the proposed form and
instructions, the Paperwork Reduction Act Submission (OMB 83-I),
supporting statement, and other documents that will be placed into
OMB's public docket files once approved may be requested from the
agency clearance officer, whose name appears below.
Michelle Long, Federal Reserve Board Clearance Officer (202-452-
3829), Division of Research and Statistics, Board of Governors of the
Federal Reserve System, Washington, DC 20551. Telecommunications Device
for the Deaf (TDD) users may contact (202-263-4869), Board of Governors
of the Federal Reserve System, Washington, DC 20551.
For further information regarding the purpose and content of the
proposed survey contact Jack Walton, Associate Director (202-452-2660),
Jeffrey Yeganeh, Manager (202-728-5801), or Susan Foley, Project Leader
(202-452-3596), Retail Payments Section, Division of Reserve Bank
Operations and Payment Systems.
Proposal to conduct under OMB delegated authority the following
survey:
Report title: Check 21 Act Survey.
Agency form number: FR 3080.
OMB control number: 7100-0279.
Frequency: Once.
Reporters: Depository institutions.
Annual reporting hours: 15,000 hours.
Estimated average hours per response: 10 hours.
Number of respondents: 1,500.
General description of report: This information collection is
voluntary (12 U.S.C. 5015) and may be accorded confidential treatment
under the Freedom of Information Act (5 U.S.C. 552 (b)(4)).
Abstract: Section 16 of the Check 21 Act requires the Federal
Reserve to study the implementation of the law and its effect on
various aspects of check processing, including funds availability, and
to report the results of the study to Congress by April 28, 2007.\1\
Specifically, Congress directed the Federal Reserve to study and report
to Congress on:
---------------------------------------------------------------------------
\1\ The Check 21 Act also directs the Board to include in its
report to Congress any recommendations for legislative action.
---------------------------------------------------------------------------
(1) The percentage of total checks cleared in which the paper check
is not returned to the paying bank;
(2) The extent to which banks make funds available to consumers for
local and nonlocal checks prior to the expiration of maximum hold
periods;
(3) The length of time within which depositary banks learn of the
nonpayment of local and nonlocal checks;
(4) The increase or decrease in check-related losses over the study
period; and
(5) The appropriateness of the time periods and amount limits
applicable under sections 603 and 604 of the Expedited Funds
Availability Act, as in effect on the date of enactment of the Check 21
Act.
To fully address the issues raised by Congress, the Federal Reserve
believes it is necessary to conduct a broad-based survey to ensure the
accurate characterization of the nation's evolving check processing
system, and the Federal Reserve is hereby publishing for comment a
draft survey to gather data from a nationally representative sample of
depository institutions, including commercial banks, savings
institutions, and credit unions.
Further, the availability for withdrawal of funds deposited by
check is governed by the Federal Reserve's Regulation CC, which
implements the Expedited Funds Availability Act (EFAA). EFAA and
Regulation CC set maximum permissible hold periods for checks deposited
into transaction accounts at depository institutions. EFAA directs the
Federal Reserve to reduce the statutory funds availability schedules as
the check clearing system improves, while also ensuring that the
reduced schedules provide depositary banks a reasonable opportunity to
learn
[[Page 24583]]
of the nonpayment of most checks in each category (such as ``nonlocal''
checks and ``local'' checks). The results of the proposed survey would
be used to determine whether reducing the hold periods in Regulation CC
is warranted.
The proposed survey would consist of five sections. Section I would
collect general information on the depository institution, such as
name, address, and contact person.
Section II consists of seven questions on respondents' losses and
recoveries related to check fraud. In its role as bank of first deposit
and as paying bank, an institution would be asked to provide the value
and number of check losses incurred in 2005, as well as the value and
number of cases associated with recoveries received in 2005 from check
losses. As bank of first deposit, institutions would be asked to
provide information on their losses by category, such as the origin of
the check (e.g., local or non-local), whether the check was dishonored
versus subject to a warranty claim, and the age of the account. As
paying bank, institutions would be asked to provide their losses by
presentment method (original checks, substitute checks, or checks
presented electronically). Both the dollar value and the number of
cases would be reported. The respondent also would be asked to compare
its check losses in 2005 with its check losses in 2004. Section II
questions are in response to study requirements 4 and 5.
Section III consists of two questions on the volume of checks, for
cases where the institution was the paying bank and for cases where the
institution was the bank of first deposit. The institution would be
asked to provide the total number and value of checks presented to it
in a calendar month, categorized by presentment method (original
checks, substitute checks, or checks presented electronically). The
institution also would be asked to provide the total number and value
of checks deposited at the institution as the bank of first deposit
during the same calendar month, categorized by origin of the check.
Section III questions are in response to study requirement 1.
Section IV consists of five questions on the institution's funds
availability policies and practices for next-day availability, local,
and nonlocal checks. The institution would be asked to provide its
number of transaction accounts and the percentage of these accounts
held by consumers. The institution would also be asked to indicate its
published funds availability policy, including the percentage of
consumer transaction accounts for which the policy permits hold
extensions on a case-by-case basis, and to specify what changes (if
any) it has made to its policy in the past two years. The institution
would be asked to indicate its funds availability practices for
deposits that do not qualify as exception holds under Regulation CC.
Finally, institutions would be asked for the percentage of check
deposits subject to Regulation CC exception holds that receive later
availability than the Regulation CC permitted holds for next-day
availability, local, and nonlocal checks. Section IV questions are in
response to study requirement 2.
Section V consists of three questions addressing the institution's
experiences with returned checks. The institution would be asked to
specify the number of business days within which it receives local and
nonlocal checks that have been returned unpaid by the paying bank. Two
questions request data on notifications and procedures regarding large-
dollar returned checks. Section V questions are in response to study
requirement 3.
The Federal Reserve will accept comments on all aspects of the
proposed survey. In general, the Federal Reserve requests comment on
how the survey might be modified to improve its responsiveness to the
requirements of section 16 of the Check 21 Act, while also enabling
depository institutions to respond to the survey with reasonable
burden. More specifically, the Federal Reserve requests comments on the
following. To what extent are institutions, in their role as banks of
first deposit, able to categorize check losses by local and non-local
checks (proposed question 2.2)? To what extent are institutions, in
their role as paying banks, able to categorize check losses by
presentment method (proposed question 2.6)? How might questions 4.2 and
4.4 be restructured to better capture the frequency with which
institutions make funds available sooner than Regulation CC requires?
Do the options listed under question 4.3(d) capture the reasons why
institutions might have changed their funds availability policies in
the past two years? And, finally, do institutions typically track check
losses by check or by case (which may involve one or more checks)? The
proposed survey is available electronically at https://
www.federalreserve.gov/boarddocs/reportforms/review.cfm.
Board of Governors of the Federal Reserve System, May 5, 2005.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 05-9318 Filed 5-9-05; 8:45 am]
BILLING CODE 6210-01-P
