Availability of Funds and Collection of Checks, 58537-58538 [E9-27189]
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[Federal Register Volume 74, Number 218 (Friday, November 13, 2009)] [Rules and Regulations] [Pages 58537-58538] From the Federal Register Online via the Government Printing Office [www.gpo.gov] [FR Doc No: E9-27189] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each week. ======================================================================== Federal Register / Vol. 74, No. 218 / Friday, November 13, 2009 / Rules and Regulations [[Page 58537]] FEDERAL RESERVE SYSTEM 12 CFR Part 229 [Regulation CC; Docket No. R-1376] Availability of Funds and Collection of Checks 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 Philadelphia 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 December 12, 2009. 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. --------------------------------------------------------------------------- \1\ For purposes of Regulation CC, the term ``bank'' refers to any depository institution, including commercial banks, savings institutions, and credit unions. --------------------------------------------------------------------------- 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 December 12, 2009, the Reserve Banks will transfer the check- processing operations of the head office of the Federal Reserve Bank of Philadelphia 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 Philadelphia 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 Philadelphia and Cleveland to reflect the transfer of check-processing operations from the head office of the Federal Reserve Bank of Philadelphia 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 December 12, 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\ --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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 and the accompanying amendments to Appendix A of Regulation CC are required by law. 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. In addition, the Board finds, in accordance with APA section 553(d), good cause for making the amendments to Appendix A relating to the transfer of check-processing operations from Philadelphia to Cleveland effective without 30 days advance publication. On October 14, 2009, the Federal Reserve Banks, by letter, informed depository institutions within Philadelphia's check-processing region of the December 12 transfer of check- [[Page 58538]] processing operations from Philadelphia to Cleveland. That letter was then published on the Federal Reserve Financial Services' website. Accordingly, the affected depository institutions are aware of and making preparations for the transfer of paper check-processing operations from Philadelphia to Cleveland. 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 Philadelphia 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, remove introductory paragraph C and the headings and listings for the Third Federal Reserve District, and revise the listing 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 \1\ 0110 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 0540 2540 0550 2550 0560 2560 0570 2570 0710 2710 0711 2711 0712 2712 0719 2719 0720 2720 0724 2724 0730 2730 0739 2739 0740 2740 0749 2749 0750 2750 0759 2759 0813 2813 0830 2830 0839 2839 0863 2863 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 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 12 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, November 6, 2009. Jennifer J. Johnson, Secretary of the Board. [FR Doc. E9-27189 Filed 11-12-09; 8:45 am] BILLING CODE 6210-01-P
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