[Federal Register: September 2, 2003 (Volume 68, Number 169)]
[Rules and Regulations]
[Page 52077-52078]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02se03-1]
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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.
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[[Page 52077]]
FEDERAL RESERVE SYSTEM
12 CFR Part 229
[Regulation CC; Docket No. R-1160]
Availability of Funds and Collection of Checks
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule.
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SUMMARY: The Board of Governors is amending appendix A of Regulation CC
to delete the reference to the Pittsburgh check processing office of
the Federal Reserve Bank of Cleveland and 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. The Board also is amending appendices A and E of Regulation CC
to replace all references to Thomson Financial Publishing Inc. with
more general references to ``an agent of the American Bankers
Association.''
DATES: The final rule will become effective on November 1, 2003.
FOR FURTHER INFORMATION CONTACT: Jack K. Walton II, Assistant Director,
(202) 452-2660, or Jeffrey S. H. Yeganeh, Manager, (202) 728-5801,
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. Otherwise, a check is 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. 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.
Earlier this year, the Federal Reserve Banks decided to reduce the
number of locations at which they process checks.\2\ As part of this
restructuring process, the Pittsburgh office of the Federal Reserve
Bank of Cleveland will cease processing checks on November 1, 2003. As
of that date, banks with routing symbols currently assigned to the
Pittsburgh office for check processing purposes will be reassigned to
the Cleveland Reserve Bank's head office. As a result of this change,
some checks that are drawn on and deposited at banks located in the
Pittsburgh and Cleveland check processing regions and that currently
are nonlocal checks will become local checks subject to faster
availability schedules.
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\2\ See 68 FR 31592, May 28, 2003.
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The Board accordingly is amending the list of routing symbols
assigned to Fourth District check processing offices to reflect the
transfer of operations from Pittsburgh to Cleveland and to assist banks
in identifying local and nonlocal banks. These amendments are effective
November 1, 2003, to coincide with the effective date of the underlying
check processing changes. The Board is providing advance notice of
these amendments to give affected banks ample time to make any needed
processing changes. The advance notice will also enable affected banks
to amend their availability schedules and related disclosures, if
necessary, and provide their customers with notice of these changes.\3\
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, will issue similar notices at least sixty
days prior to the elimination of check operations at some other Reserve
Bank offices, as described in the announcement earlier this year.
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\3\ 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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The Board also is amending Regulation CC and its appendices to
eliminate all references to Thomson Financial Publishing Inc., which
has changed its name to TFP. To avoid having to make future changes
because of a name change or substitution of service provider, the rule
and appendices henceforth simply will refer to ``an agent of the
American Bankers Association.''
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 appendices 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 reviewed the final rule under
the 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 Pittsburgh check processing office of the
Federal Reserve Bank of Cleveland and reassign the routing symbols
listed under that office to the
[[Page 52078]]
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 symbols 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, Federal Reserve System, 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 et seq.
0
2. The first sentence of paragraph A and the Fourth Federal Reserve
District routing symbol list in appendix A are revised to read as
follows:
Appendix A to Part 229--Routing Number Guide to Next-Day Availability
Checks and Local Checks
A. Each bank is assigned a routing number by an agent of the
American Bankers Association. * * *
* * * * *
Fourth Federal Reserve District
[Federal Reserve Bank of Cleveland]
Head Office
0410 2410
0412 2412
0430 2430
0432 2432
0433 2433
0434 2434
Cincinnati Branch
0420 2420
0421 2421
0422 2422
0423 2423
Columbus Office
0440 2440
0441 2441
0442 2442
* * * * *
0
3. Appendix E is amended by removing the phrase ``Thomson Financial
Publishing Inc.'' in sections II.DD., XVIII.A.2.b.ii., and
XXII.B.2.b.i. and adding the phrase ``an agent of the American Bankers
Association'' in its place.
By order of the Board of Governors of the Federal Reserve
System, August 27, 2003.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 03-22333 Filed 8-29-03; 8:45 am]
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