Availability of Funds and Collection of Checks, 43737-43739 [2024-10844]
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Federal Register / Vol. 89, No. 98 / Monday, May 20, 2024 / Rules and Regulations
anticipates a regular and frequent
transmission through physical mail of a
particular form or document containing
Social Security numbers not already
listed on the USDML, the Head of the
Departmental Element may request that
a new category relevant to the form or
document be added to the USMDL in
accordance with the procedures in
paragraphs (e)(1) through (5) of this
section:
(1) The requesting Departmental
Element must prepare a memorandum
for submission to the SAOP that:
(i) Identifies the document that
requires transmission via physical mail;
(ii) Explains with specificity the
reasons why a full Social Security
number is required to be transmitted via
physical mail on the form or document;
(iii) Provides with specificity details
on why the Social Security number
cannot be a partial Social Security
number; and
(iv) Includes any other justification to
support the Element’s request, including
any legal requirement that necessitates
the Department sending a full Social
Security number through physical mail
for business or mission purposes.
(2) The Head of the Departmental
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(3) The CPO will review the request
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updated USDML on the Department’s
website.
[FR Doc. 2024–10858 Filed 5–17–24; 8:45 am]
BILLING CODE 6450–01–P
FEDERAL RESERVE SYSTEM
12 CFR Part 229
[Regulation CC; Docket No. R–1832]
RIN 7100–AG 76
Availability of Funds and Collection of
Checks
Board of Governors of the
Federal Reserve System (Board) and
Consumer Financial Protection Bureau
(CFPB).
ACTION: Final rule.
lotter on DSK11XQN23PROD with RULES1
AGENCY:
The Board and the CFPB
(collectively, the Agencies) are
amending Regulation CC, which
implements the Expedited Funds
SUMMARY:
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16:38 May 17, 2024
Jkt 262001
Availability Act (EFA Act) and the
Check Clearing for the 21st Century Act
(Check 21 Act), to fulfill a statutory
requirement in the EFA Act to adjust the
dollar amounts under the EFA Act for
inflation.
DATES: Effective date: This final rule is
effective July 1, 2025.
FOR FURTHER INFORMATION CONTACT:
Board: Andrew Ruben, Counsel (202)
263–4851, Legal Division, or Ian C.B.
Spear, Assistant Director (202) 452–
3959, Division of Reserve Bank
Operations and Payment Systems. For
users of TTY–TRS, please call 711 from
any telephone, anywhere in the United
States.
CFPB: George Karithanom, Regulatory
Implementation & Guidance Program
Analyst, Office of Regulations, at 202–
435–7700 or at: https://reginquiries.
consumerfinance.gov/. If you require
this document in an alternative
electronic format, please contact CFPB_
Accessibility@cfpb.gov.
SUPPLEMENTARY INFORMATION:
I. Background
Regulation CC (12 CFR part 229)
implements the EFA Act and the Check
21 Act.1 Subpart B of Regulation CC
implements the requirements set forth
in the EFA Act regarding the availability
schedules within which banks 2 must
make funds available for withdrawal,
exceptions to those schedules,
disclosure of funds availability policies,
and payment of interest. The EFA Act
and subpart B of Regulation CC contain
specified dollar amounts, including: (1)
the minimum amount of deposited
funds that banks must make available
for withdrawal by opening of business
on the next day for certain check
deposits (‘‘minimum amount’’); 3 (2) the
amount a bank must make available
when using the EFA Act’s permissive
adjustment to the funds-availability
rules for withdrawals by cash or other
means (‘‘cash withdrawal amount’’); 4
(3) the amount of funds deposited by
certain checks in a new account that are
subject to next-day availability (‘‘newaccount amount’’); 5 (4) the threshold for
using an exception to the fundsavailability schedules if the aggregate
amount of checks on any one banking
1 Expedited Funds Availability Act, 12 U.S.C.
4001 et seq.; Check Clearing for the 21st Century
Act, 12 U.S.C. 5001 et seq.
2 Section 229.2(e) of Regulation CC defines
‘‘bank’’ to include banks, savings institutions, and
credit unions.
3 The minimum amount is currently $225. 12 CFR
229.10(c)(1)(vii); 12 U.S.C. 4002(a)(2)(D).
4 The cash withdrawal amount is currently $450.
12 CFR 229.12(d); 12 U.S.C. 4002(b)(3)(B).
5 The new-account amount is currently $5,525. 12
CFR 229.13(a)(1)(ii); 12 U.S.C. 4003(a)(3).
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43737
day exceeds the threshold amount
(‘‘large-deposit threshold’’); 6 (5) the
threshold for determining whether an
account has been repeatedly overdrawn
(‘‘repeatedly overdrawn threshold’’); 7
and (6) the civil liability amounts for
failing to comply with the EFA Act’s
requirements.8
The Dodd-Frank Wall Street Reform
and Consumer Protection Act (DoddFrank Act) made certain amendments to
the EFA Act, and these amendments
were effective on July 21, 2011.9 Section
609(a) of the EFA Act,10 as amended by
section 1086(d) of the Dodd-Frank Act,
provides that the Board and the Director
of the CFPB shall jointly prescribe
regulations to carry out the provisions of
the EFA Act, to prevent the
circumvention or evasion of such
provisions, and to facilitate compliance
with such provisions.
Additionally, section 1086(f) of the
Dodd-Frank Act added section 607(f) of
the EFA Act, which provides that the
dollar amounts under the EFA Act shall
be adjusted every five years after
December 31, 2011, by the annual
percentage increase in the Consumer
Price Index for Urban Wage Earners and
Clerical Workers (CPI–W), as published
by the Bureau of Labor Statistics,
rounded to the nearest multiple of
$25.11 In 2019, the Agencies
promulgated a final rule that
implemented this section of the EFA
Act. The final rule codified a
methodology for inflation adjustments
and specified that the relevant dollar
amounts shall be adjusted effective on
July 1, 2020, on July 1, 2025, and on
July 1 of every fifth year after 2025.12
6 The large-deposit threshold is currently $5,525.
12 CFR 229.13(b); 12 U.S.C. 4003(b)(1).
7 The repeatedly overdrawn threshold is currently
$5,525. 12 CFR 229.13(d)(2). This dollar amount is
not specified in the EFA Act, but is a result of the
authority of the Board and the CFPB under section
604(b)(3) of the EFA Act (12 U.S.C. 4003(b)(3)) to
establish reasonable exceptions to time limitations
for deposit accounts that have been overdrawn
repeatedly.
8 The civil liability amounts are currently ‘‘not
less than $100 nor greater than $1,100’’ for an
individual action and ‘‘not more than $552,500 or
1 percent of the net worth’’ of a depository
institution for a class action. 12 CFR 229.21(a)(2)(i),
(a)(2)(ii)(B).
9 Public Law 111–203, sections 1062, 1086,
1100H, 124 Stat. 2081 (2010); 75 FR 57252
(September 20, 2010).
10 12 U.S.C. 4008(a).
11 12 U.S.C. 4006(f).
12 See 84 FR 31687 (July 3, 2019); 84 FR 45403
(Aug. 29, 2019); 12 CFR 229.11(a). As noted in the
preamble to the July 2019 final rule, the effective
dates are consistent with section 302 of the Riegle
Community Development and Regulatory
Improvement Act of 1994 (Pub. L. 103–325, 108
Stat. 2160, 12 U.S.C. 4802). That section provides
that new regulations and amendments to
regulations prescribed by Federal banking agencies,
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Federal Register / Vol. 89, No. 98 / Monday, May 20, 2024 / Rules and Regulations
For dollar amount adjustments that are
effective on July 1, 2025, the inflation
measurement period begins in July 2018
and ends in July 2023.13
II. Adjustment
As a result of the 21.8 percent
increase in the CPI–W between July
2018 and July 2023, the following
thresholds are effective July 1, 2025: 14
Section
Threshold
Minimum Amount, 12 CFR 229.10(c)(1)(vii) .......................................................................................................................................
Cash Withdrawal Amount, 12 CFR 229.12(d) .....................................................................................................................................
New-Account Amount, 12 CFR 229.13(a)(1)(ii) ..................................................................................................................................
Large-Deposit Threshold, 12 CFR 229.13(b) ......................................................................................................................................
Repeatedly Overdrawn Threshold, 12 CFR 229.13(d)(2) ...................................................................................................................
Civil Liability Minimum and Maximum for Individual Action, 12 CFR 229.21(a)(2)(i) .........................................................................
Civil Liability Maximum for Class Action, 12 CFR 229.21(a)(2)(ii)(B) .................................................................................................
III. Legal Authority
In issuing the final rule, the Agencies
are exercising their authority under
section 609(a) of the EFA Act (12 U.S.C.
4008(a)) to amend subpart B of
Regulation CC to prescribe regulations
to carry out the provisions of the EFA
Act, to prevent the circumvention or
evasion of such provisions, and to
facilitate compliance with such
provisions.16
IV. Procedural Requirements
A. Administrative Procedure Act
Under the Administrative Procedure
Act, notice and opportunity for public
comment are not required if the
Agencies find that notice and public
comment are impracticable,
unnecessary, or contrary to the public
interest.17 The amendments in this rule
are expected, technical, and nondiscretionary adjustments that are
required by statute and result from the
application of a methodology in
Regulation CC that the Agencies
previously published for comment.18
For these reasons, the Agencies have
determined that publishing a notice of
proposed rulemaking and providing
opportunity for public comment are
unnecessary. Therefore, the
amendments are adopted in final form.
B. Regulatory Flexibility Act
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The Regulatory Flexibility Act does
not apply to a rulemaking where a
general notice of proposed rulemaking
is not required.19 As noted previously,
including the Board (but not the CFPB), that impose
additional reporting, disclosures, or other new
requirements on insured depository institutions,
shall take effect on the first day of a calendar
quarter beginning on or after the date on which the
regulations are published in final form (with certain
exceptions). 84 FR 31687 at 31688 n.16.
13 12 CFR 229.11(b)(1).
14 Dollar amounts have been rounded to the
nearest multiple of $25, consistent with statutory
requirements. 12 U.S.C. 4006(f).
15 The civil liability minimum threshold did not
change in the previous five-year inflation
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the Agencies have determined that it is
unnecessary to publish a general notice
of proposed rulemaking for this joint
final rule. Accordingly, the Regulatory
Flexibility Act’s requirements relating to
an initial and final regulatory flexibility
analysis do not apply.
C. Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995,20 the Agencies
have reviewed this final rule and
determined that it does not create any
new information collections or
substantially revise any existing
collections.
D. Plain Language Used
Section 722 of the Gramm-LeachBliley Act (Pub. L. 106–102, 113 Stat.
1338, 1471, 12 U.S.C. 4809) requires the
Federal banking agencies to use plain
language in all proposed and final rules
published after January 1, 2000. The
Board has sought to present the final
rule in a simple and straightforward
manner.
E. CFPB Congressional Review Act
Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), the CFPB will
submit a report containing this rule and
other required information to the United
States Senate, the United States House
of Representatives, and the Comptroller
General of the United States prior to the
rule taking effect. The Office of
Information and Regulatory Affairs has
designated this rule as not a ‘‘major
rule’’ as defined by 5 U.S.C. 804(2).
measurement period due to rounding to the nearest
$25, consistent with statutory requirements. As a
result, the inflation adjustment for this five-year
period includes the aggregate inflation percentage
increase for both five-year periods. 12 CFR
229.11(b)(4).
16 Additionally, section 604(b)(3) of the EFA Act
(12 U.S.C. 4003(b)(3)) authorizes the Agencies to
establish reasonable exceptions to time limitations
for deposit accounts that have been overdrawn
repeatedly. As noted above, the Agencies also rely
on this authority in adjusting the repeatedly
overdrawn threshold in 12 CFR 229.13(d).
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$275
550
6,725
6,725
6,725
15 125
$1,350
672,950
List of Subjects in 12 CFR Part 229
Banks, banking, Federal Reserve
System, Reporting and recordkeeping
requirements.
Authority and Issuance
For the reasons set forth in the
preamble, the Board amends Regulation
CC, 12 CFR part 229, as set forth below:
PART 229—AVAILABILITY OF FUNDS
AND COLLECTIONS OF CHECKS
(REGULATION CC)
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.
Subpart B—Availability of Funds and
Disclosure of Funds Availability
Policies
§ 229.10
[Amended]
2. In § 229.10, remove ‘‘$225,’’ and
add in its place ‘‘$275;’’ in paragraph
(c)(1)(vii)(A).
■ 3. In § 229.11, revise paragraph (c) to
read as follows:
■
§ 229.11
Adjustment of dollar amounts.
*
*
*
*
*
(c) Amounts. (1) For purposes of
§ 229.10(c)(1)(vii), the dollar amount in
effect during a particular period is the
amount stated in this paragraph (c)(1)
for that period.
(i) Prior to July 21, 2011, the amount
is $100.
17 5
U.S.C. 553(b)(B).
the preamble to the July 2019 final rule, the
Agencies stated their expectation that notice and
opportunity for public comment on subsequent
inflation adjustments would be impracticable,
unnecessary, or contrary to the public interest,
because the calculation methodology for the
adjustments is set forth in the regulation and future
execution of the adjustments will be technical and
non-discretionary. 84 FR 31687, 31690.
19 5 U.S.C. 603(a) and 604(a).
20 44 U.S.C. 3506; 5 CFR part 1320.
18 In
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Federal Register / Vol. 89, No. 98 / Monday, May 20, 2024 / Rules and Regulations
(ii) From July 21, 2011, through June
30, 2020, by operation of section
603(a)(2)(D) of the EFA Act (12 U.S.C.
4002(a)(2)(D)) the amount is $200.
(iii) From July 1, 2020, through June
30, 2025, the amount is $225.
(iv) Effective July 1, 2025, the amount
is $275.
(2) For purposes of § 229.12(d), the
dollar amount in effect during a
particular period is the amount stated in
this paragraph (c)(2) for that period.
(i) Prior to July 1, 2020, the amount
is $400.
(ii) From July 1, 2020, through June
30, 2025, the amount is $450.
(iii) Effective July 1, 2025, the amount
is $550.
(3) For purposes of §§ 229.13(a), (b),
and (d), the dollar amount in effect
during a particular period is the amount
stated in this paragraph (c)(3) for that
period.
(i) Prior to July 1, 2020, the amount
is $5,000.
(ii) From July 1, 2020, through June
30, 2025, the amount is $5,525.
(iii) Effective July 1, 2025, the amount
is $6,725.
(4) For purposes of § 229.21(a), the
dollar amounts in effect during a
particular period are the amounts stated
in this paragraph (c)(4) for the period.
(i) Prior to July 1, 2020, the amounts
are $100, $1,000, and $500,000
respectively.
(ii) From July 1, 2020, through June
30, 2025, the amounts are $100, $1,100,
and $552,500 respectively.
(iii) Effective July 1, 2025, the
amounts are $125, $1,350, and $672,950
respectively.
§ 229.12
column, and add in their places the
dollar amounts in the ‘‘Add’’ column in
the following table:
Section
IV.D.1 ............................
IV.D.5 ............................
IV.D.5 ............................
IV.D.5 ............................
VI.D.1. and 2 ................
VI.D.1 ............................
VI.F.1 ............................
VII.B.2.b ........................
VII.B.2.b ........................
VII.B.2.b ........................
VII.C.1 ...........................
VII.C.2 ...........................
VII.C.2 ...........................
VII.C.2 ...........................
VII.C.2 ...........................
VII.D.3 ...........................
VII.E.2 ...........................
VII.E.4 ...........................
VII.F.1 ...........................
VII.G.1 ...........................
VII.H.2.b, b.(1), and
b.(2) ...........................
VII.H.2.b.(1) and (2) ......
VII.H.2.b.(1) and (2) ......
VII.I.4 ............................
VII.I.4 ............................
XIII.C.3 and 4 ...............
XIV.C.2 .........................
XIV.C.2 .........................
Remove
Add
$5,525
225
1,225
500
450
100
100
100
5,525
5,000
5,525
2,225
225
5,300
3,475
100
5,525
100
100
100
$6,725
275
1,275
550
550
275
275
275
6,725
6,725
6,725
2,275
275
6,450
2,275
275
6,725
275
275
275
5,525
225
5,300
5,000
2,000
400
225
75
6,725
275
6,450
6,725
275
550
275
25
By order of the Board of Governors of the
Federal Reserve System.
Ann E. Misback,
Secretary of the Board.
Brian Shearer,
Assistant Director, Office of Policy Planning
and Strategy, Consumer Financial Protection
Bureau.
[FR Doc. 2024–10844 Filed 5–17–24; 8:45 am]
[Amended]
BILLING CODE 6210–01–P; 4810–AM–P
4. In § 229.12, remove ‘‘$450’’ and
‘‘$225’’ and add in their places ‘‘$550’’
and ‘‘$275’’, respectively, in paragraph
(d).
■
§ 229.13
Federal Aviation Administration
[Amended]
5. In § 229.13, remove ‘‘$5,525’’ and
add in its place ‘‘$6,725’’ in paragraphs
(a)(1)(ii), (b), and (d)(2).
14 CFR Part 71
§ 229.21
RIN 2120–AA66
■
[Amended]
6. In § 229.21:
a. Remove ‘‘$100’’ and ‘‘$1,100’’ and
add in their places ‘‘$125’’ and
‘‘$1,350’’, respectively, in paragraph
(a)(2)(i).
■ b. Remove ‘‘$552,500’’ and add in its
place ‘‘$672,950’’ in paragraph
(a)(2)(ii)(B).
■
■
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DEPARTMENT OF TRANSPORTATION
Appendix E to Part 229—[Amended]
7. In appendix E to part 229, remove
the dollar amounts in the ‘‘Remove’’
column wherever they appear within
the section indicated in the ‘‘Section’’
■
VerDate Sep<11>2014
19:46 May 17, 2024
Jkt 262001
[Docket No. FAA–2023–2275; Airspace
Docket No. 23–AEA–22]
Amendment of Class D and Class E
Airspace; Lewisburg, WV
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule; correction.
AGENCY:
A final rule was published in
the Federal Register on April 8, 2024,
amending Class D surface area and Class
E airspace for Greenbrier Valley Airport,
Lewisburg, WV, as the BUSHI nondirectional beacon (NDB) was removed
from the airspace descriptions. This
SUMMARY:
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43739
action corrects the Class D airspace
description by changing the ceiling of
the airspace from 4,000 feet to 4,800
feet.
DATES: Effective 0901 UTC, July 11,
2024. The Director of the Federal
Register approves this incorporation by
reference action under 1 CFR part 51,
subject to the annual revision of FAA
Order JO 7400.11 and publication of
conforming amendments.
FOR FURTHER INFORMATION CONTACT: John
Fornito, Operations Support Group,
Eastern Service Center, Federal Aviation
Administration, 1701 Columbia Avenue,
College Park, GA 30337; Telephone:
(404) 305–6364.
SUPPLEMENTARY INFORMATION:
Authority for This Rulemaking
History
The FAA published a final rule in the
Federal Register (89 FR 24367, April 8,
2024) for Doc. No. FAA–2023–2275,
updating the Class D and Class E
airspace for Greenbrier Valley Airport,
Lewisburg, WV. In the Class D
descriptor, the ceiling was inadvertently
changed to 4,000 feet. The ceiling
should be 4,800 feet. This action
corrects this error.
Correction to Final Rule
This action amends (14 CFR) part 71
by correcting the Class D airspace
descriptor for Greenbrier Valley Airport,
Lewisburg, WV, by replacing the ceiling
from 4,000 feet to 4,800 feet.
Regulatory Notices and Analyses
The FAA has determined that this
regulation only involves an established
body of technical regulations for which
frequent and routine amendments are
necessary to keep them operationally
current. It therefore: (1) is not a
‘‘significant regulatory action’’ under
Executive Order 12866; (2) is not a
‘‘significant rule’’ under DOT
Regulatory Policies and Procedures (44
FR 11034; February 26, 1979); and (3)
does not warrant preparation of a
regulatory evaluation as the anticipated
impact is minimal. Since this is a
routine matter that only affects air traffic
procedures and air navigation, it is
certified that this rule, when
promulgated, does not have a significant
economic impact on a substantial
number of small entities under the
criteria of the Regulatory Flexibility Act.
Environmental Review
The FAA has determined that this
action qualifies for categorical exclusion
under the National Environmental
Policy Act in accordance with FAA
Order 1050.1F, ‘‘Environmental
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]]>Agencies
[Federal Register Volume 89, Number 98 (Monday, May 20, 2024)]
[Rules and Regulations]
[Pages 43737-43739]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-10844]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 229
[Regulation CC; Docket No. R-1832]
RIN 7100-AG 76
Availability of Funds and Collection of Checks
AGENCY: Board of Governors of the Federal Reserve System (Board) and
Consumer Financial Protection Bureau (CFPB).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Board and the CFPB (collectively, the Agencies) are
amending Regulation CC, which implements the Expedited Funds
Availability Act (EFA Act) and the Check Clearing for the 21st Century
Act (Check 21 Act), to fulfill a statutory requirement in the EFA Act
to adjust the dollar amounts under the EFA Act for inflation.
DATES: Effective date: This final rule is effective July 1, 2025.
FOR FURTHER INFORMATION CONTACT:
Board: Andrew Ruben, Counsel (202) 263-4851, Legal Division, or Ian
C.B. Spear, Assistant Director (202) 452-3959, Division of Reserve Bank
Operations and Payment Systems. For users of TTY-TRS, please call 711
from any telephone, anywhere in the United States.
CFPB: George Karithanom, Regulatory Implementation & Guidance
Program Analyst, Office of Regulations, at 202-435-7700 or at: https://reginquiries.consumerfinance.gov/. If you require this document in an
alternative electronic format, please contact
[email protected].
SUPPLEMENTARY INFORMATION:
I. Background
Regulation CC (12 CFR part 229) implements the EFA Act and the
Check 21 Act.\1\ Subpart B of Regulation CC implements the requirements
set forth in the EFA Act regarding the availability schedules within
which banks \2\ must make funds available for withdrawal, exceptions to
those schedules, disclosure of funds availability policies, and payment
of interest. The EFA Act and subpart B of Regulation CC contain
specified dollar amounts, including: (1) the minimum amount of
deposited funds that banks must make available for withdrawal by
opening of business on the next day for certain check deposits
(``minimum amount''); \3\ (2) the amount a bank must make available
when using the EFA Act's permissive adjustment to the funds-
availability rules for withdrawals by cash or other means (``cash
withdrawal amount''); \4\ (3) the amount of funds deposited by certain
checks in a new account that are subject to next-day availability
(``new-account amount''); \5\ (4) the threshold for using an exception
to the funds-availability schedules if the aggregate amount of checks
on any one banking day exceeds the threshold amount (``large-deposit
threshold''); \6\ (5) the threshold for determining whether an account
has been repeatedly overdrawn (``repeatedly overdrawn threshold''); \7\
and (6) the civil liability amounts for failing to comply with the EFA
Act's requirements.\8\
---------------------------------------------------------------------------
\1\ Expedited Funds Availability Act, 12 U.S.C. 4001 et seq.;
Check Clearing for the 21st Century Act, 12 U.S.C. 5001 et seq.
\2\ Section 229.2(e) of Regulation CC defines ``bank'' to
include banks, savings institutions, and credit unions.
\3\ The minimum amount is currently $225. 12 CFR
229.10(c)(1)(vii); 12 U.S.C. 4002(a)(2)(D).
\4\ The cash withdrawal amount is currently $450. 12 CFR
229.12(d); 12 U.S.C. 4002(b)(3)(B).
\5\ The new-account amount is currently $5,525. 12 CFR
229.13(a)(1)(ii); 12 U.S.C. 4003(a)(3).
\6\ The large-deposit threshold is currently $5,525. 12 CFR
229.13(b); 12 U.S.C. 4003(b)(1).
\7\ The repeatedly overdrawn threshold is currently $5,525. 12
CFR 229.13(d)(2). This dollar amount is not specified in the EFA
Act, but is a result of the authority of the Board and the CFPB
under section 604(b)(3) of the EFA Act (12 U.S.C. 4003(b)(3)) to
establish reasonable exceptions to time limitations for deposit
accounts that have been overdrawn repeatedly.
\8\ The civil liability amounts are currently ``not less than
$100 nor greater than $1,100'' for an individual action and ``not
more than $552,500 or 1 percent of the net worth'' of a depository
institution for a class action. 12 CFR 229.21(a)(2)(i),
(a)(2)(ii)(B).
---------------------------------------------------------------------------
The Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank Act) made certain amendments to the EFA Act, and these
amendments were effective on July 21, 2011.\9\ Section 609(a) of the
EFA Act,\10\ as amended by section 1086(d) of the Dodd-Frank Act,
provides that the Board and the Director of the CFPB shall jointly
prescribe regulations to carry out the provisions of the EFA Act, to
prevent the circumvention or evasion of such provisions, and to
facilitate compliance with such provisions.
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\9\ Public Law 111-203, sections 1062, 1086, 1100H, 124 Stat.
2081 (2010); 75 FR 57252 (September 20, 2010).
\10\ 12 U.S.C. 4008(a).
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Additionally, section 1086(f) of the Dodd-Frank Act added section
607(f) of the EFA Act, which provides that the dollar amounts under the
EFA Act shall be adjusted every five years after December 31, 2011, by
the annual percentage increase in the Consumer Price Index for Urban
Wage Earners and Clerical Workers (CPI-W), as published by the Bureau
of Labor Statistics, rounded to the nearest multiple of $25.\11\ In
2019, the Agencies promulgated a final rule that implemented this
section of the EFA Act. The final rule codified a methodology for
inflation adjustments and specified that the relevant dollar amounts
shall be adjusted effective on July 1, 2020, on July 1, 2025, and on
July 1 of every fifth year after 2025.\12\
[[Page 43738]]
For dollar amount adjustments that are effective on July 1, 2025, the
inflation measurement period begins in July 2018 and ends in July
2023.\13\
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\11\ 12 U.S.C. 4006(f).
\12\ See 84 FR 31687 (July 3, 2019); 84 FR 45403 (Aug. 29,
2019); 12 CFR 229.11(a). As noted in the preamble to the July 2019
final rule, the effective dates are consistent with section 302 of
the Riegle Community Development and Regulatory Improvement Act of
1994 (Pub. L. 103-325, 108 Stat. 2160, 12 U.S.C. 4802). That section
provides that new regulations and amendments to regulations
prescribed by Federal banking agencies, including the Board (but not
the CFPB), that impose additional reporting, disclosures, or other
new requirements on insured depository institutions, shall take
effect on the first day of a calendar quarter beginning on or after
the date on which the regulations are published in final form (with
certain exceptions). 84 FR 31687 at 31688 n.16.
\13\ 12 CFR 229.11(b)(1).
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II. Adjustment
As a result of the 21.8 percent increase in the CPI-W between July
2018 and July 2023, the following thresholds are effective July 1,
2025: \14\
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\14\ Dollar amounts have been rounded to the nearest multiple of
$25, consistent with statutory requirements. 12 U.S.C. 4006(f).
------------------------------------------------------------------------
Section Threshold
------------------------------------------------------------------------
Minimum Amount, 12 CFR 229.10(c)(1)(vii)................ $275
Cash Withdrawal Amount, 12 CFR 229.12(d)................ 550
New-Account Amount, 12 CFR 229.13(a)(1)(ii)............. 6,725
Large-Deposit Threshold, 12 CFR 229.13(b)............... 6,725
Repeatedly Overdrawn Threshold, 12 CFR 229.13(d)(2)..... 6,725
Civil Liability Minimum and Maximum for Individual \15\ 125
Action, 12 CFR 229.21(a)(2)(i)......................... $1,350
Civil Liability Maximum for Class Action, 12 CFR 672,950
229.21(a)(2)(ii)(B)....................................
------------------------------------------------------------------------
III. Legal Authority
In issuing the final rule, the Agencies are exercising their
authority under section 609(a) of the EFA Act (12 U.S.C. 4008(a)) to
amend subpart B of Regulation CC to prescribe regulations to carry out
the provisions of the EFA Act, to prevent the circumvention or evasion
of such provisions, and to facilitate compliance with such
provisions.\16\
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\15\ The civil liability minimum threshold did not change in the
previous five-year inflation measurement period due to rounding to
the nearest $25, consistent with statutory requirements. As a
result, the inflation adjustment for this five-year period includes
the aggregate inflation percentage increase for both five-year
periods. 12 CFR 229.11(b)(4).
\16\ Additionally, section 604(b)(3) of the EFA Act (12 U.S.C.
4003(b)(3)) authorizes the Agencies to establish reasonable
exceptions to time limitations for deposit accounts that have been
overdrawn repeatedly. As noted above, the Agencies also rely on this
authority in adjusting the repeatedly overdrawn threshold in 12 CFR
229.13(d).
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IV. Procedural Requirements
A. Administrative Procedure Act
Under the Administrative Procedure Act, notice and opportunity for
public comment are not required if the Agencies find that notice and
public comment are impracticable, unnecessary, or contrary to the
public interest.\17\ The amendments in this rule are expected,
technical, and non-discretionary adjustments that are required by
statute and result from the application of a methodology in Regulation
CC that the Agencies previously published for comment.\18\ For these
reasons, the Agencies have determined that publishing a notice of
proposed rulemaking and providing opportunity for public comment are
unnecessary. Therefore, the amendments are adopted in final form.
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\17\ 5 U.S.C. 553(b)(B).
\18\ In the preamble to the July 2019 final rule, the Agencies
stated their expectation that notice and opportunity for public
comment on subsequent inflation adjustments would be impracticable,
unnecessary, or contrary to the public interest, because the
calculation methodology for the adjustments is set forth in the
regulation and future execution of the adjustments will be technical
and non-discretionary. 84 FR 31687, 31690.
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B. Regulatory Flexibility Act
The Regulatory Flexibility Act does not apply to a rulemaking where
a general notice of proposed rulemaking is not required.\19\ As noted
previously, the Agencies have determined that it is unnecessary to
publish a general notice of proposed rulemaking for this joint final
rule. Accordingly, the Regulatory Flexibility Act's requirements
relating to an initial and final regulatory flexibility analysis do not
apply.
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\19\ 5 U.S.C. 603(a) and 604(a).
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C. Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995,\20\ the
Agencies have reviewed this final rule and determined that it does not
create any new information collections or substantially revise any
existing collections.
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\20\ 44 U.S.C. 3506; 5 CFR part 1320.
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D. Plain Language Used
Section 722 of the Gramm-Leach-Bliley Act (Pub. L. 106-102, 113
Stat. 1338, 1471, 12 U.S.C. 4809) requires the Federal banking agencies
to use plain language in all proposed and final rules published after
January 1, 2000. The Board has sought to present the final rule in a
simple and straightforward manner.
E. CFPB Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the CFPB will submit a report containing this rule and other required
information to the United States Senate, the United States House of
Representatives, and the Comptroller General of the United States prior
to the rule taking effect. The Office of Information and Regulatory
Affairs has designated this rule as not a ``major rule'' as defined by
5 U.S.C. 804(2).
List of Subjects in 12 CFR Part 229
Banks, banking, Federal Reserve System, Reporting and recordkeeping
requirements.
Authority and Issuance
For the reasons set forth in the preamble, the Board amends
Regulation CC, 12 CFR part 229, as set forth below:
PART 229--AVAILABILITY OF FUNDS AND COLLECTIONS 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.
Subpart B--Availability of Funds and Disclosure of Funds
Availability Policies
Sec. 229.10 [Amended]
0
2. In Sec. 229.10, remove ``$225,'' and add in its place ``$275;'' in
paragraph (c)(1)(vii)(A).
0
3. In Sec. 229.11, revise paragraph (c) to read as follows:
Sec. 229.11 Adjustment of dollar amounts.
* * * * *
(c) Amounts. (1) For purposes of Sec. 229.10(c)(1)(vii), the
dollar amount in effect during a particular period is the amount stated
in this paragraph (c)(1) for that period.
(i) Prior to July 21, 2011, the amount is $100.
[[Page 43739]]
(ii) From July 21, 2011, through June 30, 2020, by operation of
section 603(a)(2)(D) of the EFA Act (12 U.S.C. 4002(a)(2)(D)) the
amount is $200.
(iii) From July 1, 2020, through June 30, 2025, the amount is $225.
(iv) Effective July 1, 2025, the amount is $275.
(2) For purposes of Sec. 229.12(d), the dollar amount in effect
during a particular period is the amount stated in this paragraph
(c)(2) for that period.
(i) Prior to July 1, 2020, the amount is $400.
(ii) From July 1, 2020, through June 30, 2025, the amount is $450.
(iii) Effective July 1, 2025, the amount is $550.
(3) For purposes of Sec. Sec. 229.13(a), (b), and (d), the dollar
amount in effect during a particular period is the amount stated in
this paragraph (c)(3) for that period.
(i) Prior to July 1, 2020, the amount is $5,000.
(ii) From July 1, 2020, through June 30, 2025, the amount is
$5,525.
(iii) Effective July 1, 2025, the amount is $6,725.
(4) For purposes of Sec. 229.21(a), the dollar amounts in effect
during a particular period are the amounts stated in this paragraph
(c)(4) for the period.
(i) Prior to July 1, 2020, the amounts are $100, $1,000, and
$500,000 respectively.
(ii) From July 1, 2020, through June 30, 2025, the amounts are
$100, $1,100, and $552,500 respectively.
(iii) Effective July 1, 2025, the amounts are $125, $1,350, and
$672,950 respectively.
Sec. 229.12 [Amended]
0
4. In Sec. 229.12, remove ``$450'' and ``$225'' and add in their
places ``$550'' and ``$275'', respectively, in paragraph (d).
Sec. 229.13 [Amended]
0
5. In Sec. 229.13, remove ``$5,525'' and add in its place ``$6,725''
in paragraphs (a)(1)(ii), (b), and (d)(2).
Sec. 229.21 [Amended]
0
6. In Sec. 229.21:
0
a. Remove ``$100'' and ``$1,100'' and add in their places ``$125'' and
``$1,350'', respectively, in paragraph (a)(2)(i).
0
b. Remove ``$552,500'' and add in its place ``$672,950'' in paragraph
(a)(2)(ii)(B).
Appendix E to Part 229--[Amended]
0
7. In appendix E to part 229, remove the dollar amounts in the
``Remove'' column wherever they appear within the section indicated in
the ``Section'' column, and add in their places the dollar amounts in
the ``Add'' column in the following table:
------------------------------------------------------------------------
Section Remove Add
------------------------------------------------------------------------
IV.D.1.............................................. $5,525 $6,725
IV.D.5.............................................. 225 275
IV.D.5.............................................. 1,225 1,275
IV.D.5.............................................. 500 550
VI.D.1. and 2....................................... 450 550
VI.D.1.............................................. 100 275
VI.F.1.............................................. 100 275
VII.B.2.b........................................... 100 275
VII.B.2.b........................................... 5,525 6,725
VII.B.2.b........................................... 5,000 6,725
VII.C.1............................................. 5,525 6,725
VII.C.2............................................. 2,225 2,275
VII.C.2............................................. 225 275
VII.C.2............................................. 5,300 6,450
VII.C.2............................................. 3,475 2,275
VII.D.3............................................. 100 275
VII.E.2............................................. 5,525 6,725
VII.E.4............................................. 100 275
VII.F.1............................................. 100 275
VII.G.1............................................. 100 275
VII.H.2.b, b.(1), and b.(2)......................... 5,525 6,725
VII.H.2.b.(1) and (2)............................... 225 275
VII.H.2.b.(1) and (2)............................... 5,300 6,450
VII.I.4............................................. 5,000 6,725
VII.I.4............................................. 2,000 275
XIII.C.3 and 4...................................... 400 550
XIV.C.2............................................. 225 275
XIV.C.2............................................. 75 25
------------------------------------------------------------------------
By order of the Board of Governors of the Federal Reserve
System.
Ann E. Misback,
Secretary of the Board.
Brian Shearer,
Assistant Director, Office of Policy Planning and Strategy, Consumer
Financial Protection Bureau.
[FR Doc. 2024-10844 Filed 5-17-24; 8:45 am]
BILLING CODE 6210-01-P; 4810-AM-P
