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Federal Reserve Bank of Dallas 2200 N. PEARL ST. DALLAS, TX 75201-2272 HELEN E. HOLCOMB FIRST VICE PRESIDENT AND CHIEF OPERATING OFFICER September 29, 2004 Notice 04-66 TO: The Chief Operating Officer of each financial institution and others concerned in the Eleventh Federal Reserve District SUBJECT Amendment to Regulation CC (Availability of Funds and Collection of Checks) DETAILS The Board of Governors is amending appendix A of Regulation CC to delete the reference to the Indianapolis check processing office of the Federal Reserve Bank of Chicago and reassign the Federal Reserve routing symbols currently listed under that office to the Cincinnati branch of the Federal Reserve Bank of Cleveland. This amendment is the last in a series of amendments to the appendix associated with the restructuring of check processing operations that the Reserve Banks announced in February 2003. The Board also is providing advance notice about a series of future amendments to appendix A in connection with the next phase of the Reserve Banks’ restructuring of the check processing operations within the Federal Reserve System. This future restructuring and the associated amendments to appendix A will take effect on a staggered basis beginning in 2005 and ending in early 2006. The final rule will become effective October 30, 2004. For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810. -2- ATTACHMENT A copy of the Board’s notice as it appears on pages 57837–39, Vol. 69, No. 187 of the Federal Register dated September 28, 2004, is attached. MORE INFORMATION For more information, please contact one of the following persons listed below: Rick Flansburg Michele Hitchings Jim McCammon Susan Vice Kathy Waggoner (210) 978-1661 (713) 652-9141 (214) 922-5491 (214) 922-5430 (713) 652-9146 Paper copies of this notice or previous Federal Reserve Bank notices can be printed from our web site at www.dallasfed.org/banking/notices/index.html. Federal Register / Vol. 69, No. 187 / Tuesday, September 28, 2004 / Rules and Regulations FEDERAL RESERVE SYSTEM 12 CFR Part 229 [Regulation CC; Docket No. R–1212] Availability of Funds and Collection of Checks Board of Governors of the Federal Reserve System. ACTION: Final rule; technical amendment. AGENCY: SUMMARY: The Board of Governors is amending appendix A of Regulation CC to delete the reference to the Indianapolis check processing office of the Federal Reserve Bank of Chicago and reassign the Federal Reserve routing symbols currently listed under that office to the Cincinnati branch of the Federal Reserve Bank of Cleveland. This amendment is the last in a series of amendments to the appendix associated with the restructuring of check processing operations that the Reserve Banks announced in February 2003. The Board also is providing advance notice about a series of future amendments to appendix A in connection with the next phase of the Reserve Banks’ restructuring of the check processing operations within the Federal Reserve System. This future restructuring and the associated amendments to appendix A will take effect on a staggered basis beginning in 2005 and ending in early 2006. DATES: The final rule will become effective on October 30, 2004. 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: Background 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 1 For purposes of Regulation CC, the term ‘‘bank’’ refers to any depository institution, including commercial banks, savings institutions, and credit unions. VerDate jul<14>2003 15:32 Sep 27, 2004 Jkt 203001 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.’’ 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. Final Amendment to Appendix A As explained in detail in the Board’s final rule published in the Federal Register on May 28, 2003, the Federal Reserve Banks decided in early 2003 to reduce the number of locations at which they process checks.2 As part of this restructuring process, effective October 30, 2004, the Indianapolis office of the Federal Reserve Bank of Chicago will cease processing checks and banks with routing symbols currently assigned to that office for check processing purposes will be reassigned to the Cincinnati branch of the Federal Reserve Bank of Cleveland. This is the last stage of the restructuring process announced in 2003. 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 Cincinnati check processing region serves banks located in multiple Federal Reserve districts, banks located in the expanded Cincinnati 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. To assist banks in identifying local and nonlocal checks and making funds 2 See 68 FR 31592, May 28, 2003. In addition to the general advance notice of future amendments previously provided by the Board, as well as the Board’s notices of each of the final amendments, the Reserve Banks generally 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 www.frbservices.org. PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 57837 availability decisions, the Board is amending the lists of routing symbols associated with the Federal Reserve Banks of Cleveland and Chicago to reflect the transfer of operations from the Chicago Reserve Bank’s Indianapolis office to the Cleveland Reserve Bank’s Cincinnati branch. To coincide with the effective date of the underlying check processing changes, the amendments are effective October 30, 2004. 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. Information About Future Changes to Appendix A As the Federal Reserve Banks announced on August 2, 2004,4 in response to the continued nationwide decline in check usage and to position themselves more effectively to meet the cost recovery requirements of the Monetary Control Act of 1980, the Reserve Banks have decided to reduce further the number of locations at which they process checks. The Reserve Banks plan to stop processing checks at nine offices, and the checks currently processed at those offices will be processed at other nearby offices, as follows: Branches and offices that no longer will process checks: Boston, MA .................... Columbus, OH ............... Birmingham, AL ............. Nashville, TN .................. Detroit, MI ...................... Oklahoma City, OK ........ Houston, TX ................... Portland, OR .................. Salt Lake City, UT .......... Branches and offices to which check processing will be transferred: Windsor Locks, CT. Cleveland, OH. Atlanta, GA. Atlanta, GA. Cleveland, OH. Dallas, TX. Dallas, TX. Seattle, WA. Denver, CO. The restructuring of Reserve Bank check processing operations will take place in several stages over the course of 2005 and early 2006 and collectively will reduce the number of check 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. 4 The Reserve Banks’ press release concerning the upcoming restructuring process is available at http://www.frbservices.org/Retail/pdf/ CheckAnnouncePressRelease8–2–04.pdf. E:\FR\FM\28SER1.SGM 28SER1 57838 Federal Register / Vol. 69, No. 187 / Tuesday, September 28, 2004 / Rules and Regulations processing regions from 32 to 23. The Board will amend appendix A in connection with each stage of the restructuring to delete the name of the office(s) that will no longer process checks and transfer the affected Federal Reserve routing symbols to another check processing office. The Board intends to announce each stage of the restructuring and the associated amendments to appendix A at least 60 days prior to the effective date of the amendment in order to give affected banks ample time to make processing changes and, if necessary, amend their availability schedules and related disclosures and provide their customers with notice of any changes to their availability schedules. Some affected banks might prefer to make or to plan for some or all of their processing and availability changes prior to the effective dates of the relevant amendments. For the information and planning needs of affected banks, the Board today is describing below the Federal Reserve routing symbol changes to appendix A that will be made between January 1, 2005, and early 2006. 1. Windsor Locks The operations of the Boston head office will be transferred such that banks with the following Federal Reserve routing symbols will be local to the Windsor Locks office: 0110 2110 0111 2111 0112 2112 0113 2113 0114 2114 0115 2115 0116 2116 0117 2117 0118 2118 0119 2119 0211 2211 2. Cleveland The operations of the Columbus office and the Detroit branch will be transferred such that banks with the following Federal Reserve routing symbols will be local to the Cleveland head office: 0410 2410 0412 2412 0430 2430 0432 2432 0433 2433 0434 2434 0440 2440 0441 2441 0442 2442 0720 2720 0724 2724 VerDate jul<14>2003 15:32 Sep 27, 2004 Jkt 203001 3. Atlanta The operations of the Birmingham and Nashville branches will be transferred such that banks with the following Federal Reserve routing symbols will be local to the Atlanta head office: 0610 2610 0611 2611 0612 2612 0613 2613 0620 2620 0621 2621 0622 2622 0640 2640 0641 2641 0642 2642 4. Denver The operations of the Salt Lake City branch will be transferred such that banks with the following Federal Reserve routing symbols will be local to the Denver branch: 1020 3020 1021 3021 1022 3022 1023 3023 1070 3070 1240 3240 1241 3241 1242 3242 1243 3243 5. Dallas The operations of the Oklahoma City and Houston branches will be transferred such that banks with the following Federal Reserve routing symbols will be local to the Dallas head office: 1030 3030 1031 3031 1039 3039 1110 3110 1111 3111 1113 3113 1119 3119 1120 3120 1122 3122 1123 3123 1130 3130 1131 3131 1140 3140 1149 3149 1163 3163 6. Seattle The operations of the Portland branch will be transferred such that banks with the following Federal Reserve routing symbols will be local to the Seattle branch: 1230 3230 1231 3231 1232 3232 1233 3233 1250 3250 PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 1251 3251 1252 3252 The Federal Reserve routing symbols assigned to all other Federal Reserve branches and offices will remain the same. 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 the final rule. The revisions to the appendix are technical in nature and are required by the statutory and regulatory definitions of ‘‘check-processing region.’’ Thus, the Board has determined that the section 553(b) notice and comment procedures are unnecessary. Regulatory Flexibility Act Certification Pursuant to section 605(b) of the Regulatory Flexibility Act (5 U.S.C. 605(b)), the Board certifies that the final rule will not have a significantly adverse economic impact on a substantial number of small entities. These amendments are technical, and the routing number changes are required by law. Moreover, these amendments apply to all banks regardless of their size. Many small banks generally provide next-day availability for all checks and will not be affected by this amendment. For the subset of small banks that does distinguish between checks subject to next-day availability and those subject to longer holds, the final rule should necessitate only minimal programming changes. Some of these affected banks might also have to modify their funds availability disclosures and notify both new and existing customers of the modified funds availability schedules. 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 Indianapolis office of the Federal Reserve Bank of Chicago and reassign the routing symbols listed under that office to the Cincinnati 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 numbers in their disclosure statements would be required to notify customers of the resulting change in availability under § 229.18(e). However, all paperwork collection procedures associated with E:\FR\FM\28SER1.SGM 28SER1 Federal Register / Vol. 69, No. 187 / Tuesday, September 28, 2004 / Rules and Regulations Regulation CC already are in place, and the Board accordingly anticipates that no additional burden will be imposed as a result of this rulemaking. 12 CFR Chapter II List of Subjects in 12 CFR Part 229 Banks, Banking, Reporting and recordkeeping requirements. Authority and Issuance 0759 2759 Detroit Branch 0720 2720 0724 2724 Des Moines Office 0730 2730 0739 2739 1040 3040 1041 3041 1049 3049 * * * * * For the reasons set forth in the By order of the Board of Governors of the preamble, the Board is amending 12 CFR Federal Reserve System, acting through the part 229 to read as follows: ■ PART 229 AVAILABILITY OF FUNDS AND COLLECTION OF CHECKS (REGULATION CC) 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. 2. The Fourth and Seventh Federal Reserve 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 * * * * * Fourth Federal Reserve District [Federal Reserve Bank of Cleveland] Head Office 0410 0412 0430 0432 0433 0434 2410 2412 2430 2432 2433 2434 Cincinnati Branch 0420 2420 0421 2421 0422 2422 0423 2423 0515 2515 0519 2519 0740 2740 0749 2749 0813 2813 0830 2830 0839 2837 0863 2863 Columbus Office 0440 2440 0441 2441 0442 2442 * * * * * Seventh Federal Reserve District [Federal Reserve Bank of Chicago] Head Office 0710 0711 0712 0719 0750 2710 2711 2712 2719 2750 Secretary of the Board under delegated authority, September 22, 2004. Jennifer J. Johnson, Secretary of the Board. [FR Doc. 04–21632 Filed 9–27–04; 8:45 am] BILLING CODE 6210–01–P 57839
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