[Federal Register Volume 72, Number 121 (Monday, June 25, 2007)]
[Rules and Regulations]
[Pages 34596-34597]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-12194]


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FEDERAL RESERVE SYSTEM

12 CFR Part 229

[Regulation CC; Docket No. R-1289]


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 San Francisco and reassign the Federal Reserve routing symbols 
currently listed under that office to the Los Angeles branch office of 
the Federal Reserve Bank of San Francisco. 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 August 18, 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 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.

[[Page 34597]]

    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 head office of the 
Federal Reserve Bank of San Francisco will cease processing checks on 
August 18, 2007. As of that date, banks with routing symbols currently 
assigned to the San Francisco head office for check processing purposes 
will be reassigned to the San Francisco Reserve Bank's Los Angeles 
branch 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 
Twelfth District check processing offices to conform to the transfer of 
operations from the San Francisco head office to the Los Angeles branch 
office. To coincide with the effective date of the underlying check 
processing changes, the amendments are effective August 18, 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.\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 a similar notice at least sixty days prior to the elimination 
of check processing operations at the Helena branch office of the 
Federal Reserve Bank of Minneapolis, as described in the May 2007 
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 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 head office of the Federal Reserve 
Bank of San Francisco and reassign the routing symbols listed under 
that office to the Los Angeles branch office of the Federal Reserve 
Bank of San Francisco. 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.


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2. The Twelfth 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

* * * * *

Twelfth Federal Reserve District

[Federal Reserve Bank of San Francisco]

Los Angeles Branch

1210 3210
1211 3211
1212 3212
1213 3213
1220 3220
1221 3221
1222 3222
1223 3223
1224 3224

Seattle Branch

1230 3230
1231 3231
1232 3232
1233 3233
1250 3250
1251 3251
1252 3252
* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, June 20, 2007.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E7-12194 Filed 6-22-07; 8:45 am]
BILLING CODE 6210-01-P