OCC 2003-26
OCC Bulletin

Subject:      Expedited Funds Availability Act
Description:  Revisions to Routing Numbers and Check Processing 
              Regions

Date:	      June 19, 2003

TO:  Chief Executive Officers and Compliance Officers of All 
     National Banks, Department and Division Heads, and All 
     Examining Personnel

The Board of Governors of the Federal Reserve System (Board) has 
revised Regulation CC (12 CFR 229), the implementing regulation for 
the Expedited Funds Availability Act, 12 USC 4001 et seq.  
Specifically, the Board amended Appendix A to Regulation CC, the 
Routing Number Guide to Next-Day Availability Checks and Local 
Checks.  The final rule becomes effective on July 28, 2003.

Under Regulation CC, items generally subject to next- or second-day 
availability include checks drawn on the U.S. Treasury; U.S. Postal 
Service money orders; checks drawn on a Federal Reserve Bank (FRB) 
or a Federal Home Loan Bank (FHLB); checks drawn by a state or unit 
of general local government; cashier’s, certified, or teller’s 
checks; and checks drawn on the same branch or another branch of the 
depositary bank if both branches are located within the same Federal 
Reserve check processing region.  The Board’s final rule updates 
Regulation CC’s list of FRB and FHLB routing numbers as of the 
effective date. 

For checks that are not subject to the next- or second-day 
availability rules, banks generally must provide faster availability 
for funds deposited by a “local check” than for funds deposited 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.  The Board’s final 
rule advises banks about future amendments to Regulation CC (to be 
published in the Federal Register at least 60 days before the 
effective date) that will reduce the number of check processing 
regions from 44 to 32.  The result of these changes will be that 
more checks in the affected regions will be considered “local” when 
deposited, and thus subject to the rules for faster funds 
availability. These amendments will take effect on a staggered basis 
beginning in the second half of 2003 and ending in late 2004.  The 
Board notes, however, that affected banks may prefer to make all of 
their processing and availability changes prior to the effective 
dates of these amendments. 

A copy of the Board’s final rule is attached.  You may direct any 
questions to your supervisory office, the Compliance Division at 
(202) 874-4428, or the Community and Consumer Law Division at 
(202) 874-5750.

_______________________________________
David G. Hammaker
Deputy Comptroller for Compliance

Attachment:  68 FR 31592
[ http://www.occ.treas.gov/fr/fedregister/68fr31592.pdf ]