[Federal Register: February 14, 2005 (Volume 70, Number 29)]
[Rules and Regulations]
[Page 7379-7381]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14fe05-2]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 229
[Regulation CC; Docket No. R-1221]
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 is amending appendix A of Regulation CC
to delete the reference to the Birmingham branch office of the Federal
Reserve Bank of Atlanta and reassign the Federal Reserve routing
symbols currently listed under that office to the head office of the
Federal Reserve Bank of Atlanta. 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 March 26, 2005.
FOR FURTHER INFORMATION CONTACT: Jack K. Walton II, Assistant 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
[[Page 7380]]
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.
---------------------------------------------------------------------------
\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.
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 reduce further the number of locations at which they process
checks.\2\ This notice sets forth the first in a series of appendix A
amendments related to that decision, and the Board will issue separate
notices for each phase of the restructuring.\3\
---------------------------------------------------------------------------
\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
.
---------------------------------------------------------------------------
As part of the restructuring process, the Birmingham branch office
of the Federal Reserve Bank of Atlanta will cease processing checks on
March 26, 2005. As of that date, banks with routing symbols currently
assigned to the Birmingham branch office for check processing purposes
will be reassigned to the Atlanta Reserve Bank's head office. As a
result of this change, some checks that are drawn on and deposited at
banks located in the Birmingham and Atlanta 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 Sixth
District check processing offices to conform to the transfer of
operations from Birmingham to Atlanta. To coincide with the effective
date of the underlying check processing changes, the amendments are
effective March 26, 2005. 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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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 Sec. 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 Birmingham branch office of the Federal
Reserve Bank of Atlanta and reassign the routing symbols listed under
that office to the head office of the Federal Reserve Bank of Atlanta.
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
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. The Sixth 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
* * * * *
Sixth Federal Reserve District
[Federal Reserve Bank of Atlanta]
------------------------------------------------------------------------
------------------------------------------------------------------------
Head Office
------------------------------------------------------------------------
0610 2610
0611 2611
0612 2612
0613 2613
0620 2620
0621 2621
0622 2622
------------------------------------
Jacksonville Branch
------------------------------------------------------------------------
0630 2630
0631 2631
0632 2632
0660 2660
0670 2670
------------------------------------
Nashville Branch
------------------------------------------------------------------------
0640 2640
0641 2641
0642 2642
------------------------------------
New Orleans Branch
------------------------------------------------------------------------
0650 2650
0651 2651
0652 2652
0653 2653
0654 2654
0655 2655
------------------------------------------------------------------------
* * * * *
By order of the Board of Governors of the Federal Reserve
System, acting through the
[[Page 7381]]
Secretary of the Board under delegated authority, February 7, 2005.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 05-2674 Filed 2-11-05; 8:45 am]
BILLING CODE 6210-01-P