[Federal Register: August 17, 2007 (Volume 72, Number 159)]
[Rules and Regulations]
[Page 46143-46144]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17au07-4]
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FEDERAL RESERVE SYSTEM
12 CFR Part 229
[Regulation CC; Docket No. R-1293]
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 Helena branch office of the Federal
Reserve Bank of Minneapolis and reassign the Federal Reserve routing
symbols currently listed under that office to the Denver branch office
of the Federal Reserve Bank of Kansas City. 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 October 20, 2007.
FOR FURTHER INFORMATION CONTACT: Jack K. Walton II, Associate Director
(202/452-2660), or Joseph P. Baressi, Financial Services Project Leader
(202/452-3959), Division of Reserve Bank Operations and Payment
Systems; or Kara L. Handzlik, Attorney (202/452-3852), 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 the Board's final rule published in the Federal
Register on May 18, 2007, 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 amendments set forth in this notice are such
final rules.\3\
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\2\ See 72 FR 27951, May 18, 2007.
\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 strive 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 Helena branch office of
the Federal Reserve Bank of Minneapolis will cease processing checks on
October 20, 2007.\4\ As of that date, banks with routing symbols
currently assigned to the Helena branch office for check processing
purposes will be reassigned to the Denver branch office of the Federal
Reserve Bank of Kansas City. As
[[Page 46144]]
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. Because the Denver check processing
region serves banks located in multiple Federal Reserve districts,
banks located in the expanded Denver check processing region cannot
determine that a check is nonlocal solely because the paying bank for
that check is located in another Federal Reserve District.
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\4\ The Reserve Banks intend, however, for the Helena branch to
continue serving as a site at which substitute checks are printed
for delivery to paying banks.
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To assist banks in identifying local and nonlocal checks, the Board
accordingly is amending the lists of routing symbols associated with
the Federal Reserve Banks of Minneapolis and Kansas City to conform to
the transfer of operations from the Minneapolis Reserve Bank's Helena
branch office to the Kansas City Reserve Bank's Denver branch office.
To coincide with the effective date of the underlying check processing
changes, the amendments are effective October 20, 2007. 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.\5\ The Federal Reserve routing symbols
assigned to all other Federal Reserve branches and offices will remain
the same at this time.
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\5\ 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 Sec. 553(b) notice and
comment procedures are unnecessary. In addition, the underlying
consolidation of Federal Reserve Bank check processing offices involves
a matter relating to agency management, which is exempt from notice and
comment procedures.
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. This technical amendment to appendix A of Regulation CC
will delete the reference to the Helena branch office of the Federal
Reserve Bank of Minneapolis and reassign the routing symbols listed
under that office to the Denver branch office of the Federal Reserve
Bank of Kansas City. 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 Ninth and Tenth District routing symbol lists 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
* * * * *
NINTH FEDERAL RESERVE DISTRICT
[Federal Reserve Bank of Minneapolis]
Head Office
0910 2910
0911 2911
0912 2912
0913 2913
0914 2914
0915 2915
0918 2918
0919 2919
0960 2960
TENTH FEDERAL RESERVE DISTRICT
[Federal Reserve Bank of Kansas City]
Head Office
1010 3010
1011 3011
1012 3012
1019 3019
Denver Branch
0920 2920
0921 2921
0929 2929
1020 3020
1021 3021
1022 3022
1023 3023
1070 3070
1240 3240
1241 3241
1242 3242
1243 3243
* * * * *
By order of the Board of Governors of the Federal Reserve
System, acting through the Secretary of the Board under delegated
authority, August 13, 2007.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E7-16184 Filed 8-16-07; 8:45 am]
BILLING CODE 6210-01-P