[Federal Register: December 9, 2005 (Volume 70, Number 236)]
[Rules and Regulations]
[Page 73128-73129]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09de05-3]
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FEDERAL RESERVE SYSTEM
12 CFR Part 229
[Regulation CC; Docket No. R-1242]
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 of Governors is amending appendix A of Regulation CC
to delete the reference to the head office of the Federal Reserve Bank
of Boston and reassign the Federal Reserve routing symbols currently
listed under that office to the Windsor Locks office of the Federal
Reserve Bank of Boston. These amendments will ensure that the
information in appendix A accurately describes the actual structure of
check processing operations within the Federal Reserve System.
DATES: The final rule will become effective on February 25, 2006.
FOR FURTHER INFORMATION CONTACT: Jack K. Walton II, Associate Director
(202-452-2660), or Joseph P. Baressi, Senior Financial Services Analyst
(202-452-3959), Division of Reserve Bank Operations and Payment
Systems; or Adrianne G. Threatt, Counsel (202-452-3554), 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 drawn on a bank is
considered local if it is payable by or at a bank located in the same
Federal Reserve check processing region as the depositary bank. A check
drawn on a nonbank is considered local if it is payable through a bank
located in the same Federal Reserve check processing region as the
depositary bank. Checks that do not meet the requirements for local
checks are considered nonlocal.
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\1\ For purposes of Regulation CC, the term ``bank'' refers to
any depository institution, including commercial banks, savings
institutions, and credit unions.
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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.
As explained in detail in the Board's final rule published in the
Federal Register on September 28, 2004, the Federal Reserve Banks have
decided to restructure their check processing services by reducing
further the number of locations at which they process checks.\2\ The
Board issues separate final rules amending appendix A for each phase of
the restructuring, and the
[[Page 73129]]
amendments set forth in this notice are such final rules.\3\
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\2\ See 69 FR 57837, September 28, 2004.
\3\ In addition to the general advance notice of future
amendments provided by the Board, and the Board's notices of final
amendments, the Reserve Banks are striving to inform affected
depository institutions of the exact date of each office transition
at least 120 days in advance. The Reserve Banks' communications to
affected depository institutions are available at http://www.frbservices.org
.
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As part of the restructuring process, the head office of the
Federal Reserve Bank of Boston will cease processing checks on February
25, 2006. As of that date, banks with routing symbols currently
assigned to the Boston head office for check processing purposes will
be reassigned to the Boston Reserve Bank's Windsor Locks office. As a
result of this change, some checks that are drawn on and deposited at
banks located in the affected 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 banks, the Board
accordingly is amending the lists of routing symbols assigned to First
District check processing offices to conform to the transfer of
operations from the Boston head office to the Windsor Locks office. To
coincide with the effective date of the underlying check processing
changes, the amendments are effective February 25, 2006. The Board is
providing advance notice of these amendments to give affected banks
ample time to make any needed processing changes. The advance 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.\4\ The Federal Reserve routing symbols
assigned to all other Federal Reserve branches and offices will remain
the same at this time. The Board of Governors, however, intends to
issue similar notices at least sixty days prior to the elimination of
check operations at some other Reserve Bank offices, as described in
the September 2004 Federal Register document.
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\4\ Section 229.18(e) of Regulation CC requires that banks
notify account holders who are consumers within 30 days after
implementing a change that improves the availability of funds.
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Administrative Procedure Act
The Board has not followed the provisions of 5 U.S.C. 553(b)
relating to notice and public participation in connection with the
adoption of this final rule. The revisions to the appendix are
technical in nature, and the routing symbol revisions are required by
the statutory and regulatory definitions of ``check-processing
region.'' Because there is no substantive change on which to seek
public input, the Board has determined that the section 553(b) notice
and comment procedures are unnecessary.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3506; 5 CFR 1320 Appendix A.1), the Board has reviewed the final rule
under authority delegated to the Board by the Office of Management and
Budget. This technical amendment to appendix A of Regulation CC will
delete the reference to the head office of the Federal Reserve Bank of
Boston and reassign the routing symbols listed under that office to the
Windsor Locks office of the Federal Reserve Bank of Boston. 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,
because all paperwork collection procedures associated with Regulation
CC already are in place, the Board 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
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. The First Federal Reserve District routing symbol list in appendix A
is revised to read as follows:
Appendix A To Part 229--Routing Number Guide to Next-Day
Availability Checks and Local Checks
* * * * *
FIRST FEDERAL RESERVE DISTRICT
[Federal Reserve Bank of Boston]
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Windsor Locks Office:
0110 \1\ 2110 \2\
0111 2111
0112 2112
0113 2113
0114 2114
0115 2115
0116 2116
0117 2117
0118 2118
0119 2119
0211 \3\ 2211 \3\
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\1\ The first two digits identify the Federal Reserve District. For
example, 01 identifies the First Federal Reserve District (Boston),
and 12 identifies the Twelfth District (San Francisco).
\2\ 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.
\3\ Banks in Fairfield County, Connecticut, are members of the Federal
Reserve Bank of New York and therefore have Second District routing
numbers. Their checks, however, are processed by the Windsor Locks
office. Thus, checks drawn on banks with 0211 or 2211 routing numbers
would not be local checks for Second District depositary banks.
* * * * *
By order of the Board of Governors of the Federal Reserve
System, acting through the Secretary of the Board under delegated
authority, December 5, 2005.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E5-7098 Filed 12-8-05; 8:45 am]
BILLING CODE 6210-01-P