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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 June 5, 2003 Notice 03-29 TO: The Chief Operating Officer of each financial institution and others concerned in the Eleventh Federal Reserve District SUBJECT Final Amendment to Regulation CC (Availability of Funds and Collection of Checks) DETAILS The Board of Governors has published a final amendment, effective July 28, 2003, to appendix A of Regulation CC (Availability of Funds and Collection of Checks) that updates the routing numbers for Federal Reserve Banks and Federal Home Loan Banks. Banks generally must provide next-day or second-day availability for checks drawn on these routing numbers. This amendment also reorganizes and clarifies existing information in the introductory material preceding the routing number list. The Board also has provided information about a series of future amendments that it will make to appendix A to reflect the restructuring of check processing functions within the Federal Reserve System. These amendments collectively will reduce the number of check processing regions listed in appendix A from 44 to 32, thereby resulting in more checks in the affected regions being local to one another. The amendments will take effect on a staggered basis beginning in the second half of 2003 and ending in late 2004. The Board will publish each amendment in the Federal Register at least 60 days before the effective date. ATTACHMENT A copy of the Board’s notice as it appears on pages 31592–96, Vol. 68, No. 102 of the Federal Register dated May 28, 2003, is attached. 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- MORE INFORMATION For more information, please contact Jack K. Walton II, Assistant Director, at (202) 452-2660; Michele Braun, Manager, at (202) 452-2819; or Jeffrey S. H. Yeganeh, Senior Financial Services Analyst, at (202) 728-5801, Division of Reserve Bank Operations and Payment Systems; or Adrianne G. Threatt, Counsel, at (202) 452-3554, Legal Division. For users of Telecommunications Devices for the Deaf (TDD) only, call (202) 263-4869. Paper copies of this notice or previous Federal Reserve Bank notices can be printed from our web site at www.dallasfed.org/htm/pubs/notices.html. Sincerely, 31592 Federal Register / Vol. 68, No. 102 / Wednesday, May 28, 2003 / Rules and Regulations FEDERAL RESERVE SYSTEM 12 CFR Part 229 [Regulation CC; Docket No. R–1150] Availability of Funds and Collection of Checks AGENCY: Board of Governors of the Federal Reserve System. ACTION: Final rule. SUMMARY: The Board of Governors is publishing a final amendment to appendix A of Regulation CC that updates the routing numbers for Federal Reserve Banks and Federal Home Loan Banks. Banks generally must provide next–day or second–day availability for checks drawn on these routing numbers. This amendment also reorganizes and clarifies existing information in the introductory material preceding the routing number list. The Board also is providing information about a series of future amendments that the Board will make to appendix A to reflect the restructuring of check processing functions within the Federal Reserve System. These amendments collectively will reduce VerDate Jan<31>2003 21:22 May 27, 2003 Jkt 200001 PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 E:\FR\FM\28MYR1.SGM 28MYR1 Federal Register / Vol. 68, No. 102 / Wednesday, May 28, 2003 / Rules and Regulations the number of check processing regions listed in appendix A from 44 to 32, thereby resulting in more checks in the affected regions being local to one another. These amendments will take effect on a staggered basis beginning in the second half of 2003 and ending in late 2004. The Board will publish each amendment in the Federal Register at least 60 days before the effective date. DATES: The final rule will become effective on July 28, 2003. FOR FURTHER INFORMATION CONTACT: Jack K. Walton II, Assistant Director (202/ 452–2660), Michele Braun, Manager (202/452–2819), or Jeffrey S. H. Yeganeh, Senior Financial Services Analyst (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: Background Regulation CC establishes the maximum period a bank may wait between receiving a deposit and making the deposited funds available for withdrawal.1 Generally, a bank must make funds available for withdrawal within one or two days of deposit if the funds are deposited by certain types of checks that have a relatively low risk of being returned and the deposit meets the other conditions described at § 229.10(c) of Regulation CC.2 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 or a Federal Home Loan Bank; 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 1 For purposes of Regulation CC, the term ‘‘bank’’ refers to any depository institution, including commercial banks, savings institutions, and credit unions. 2 Other requirements for next–day availability are that the check be deposited in person to an employee of the depositary bank into an account held by the payee of a check. In some cases, next– day availability also requires the use of a special deposit slip and, in the case of a check issued by a state government or unit thereof, that the depositary bank be located in the state in which the check was issued. If a deposit meets all the requirements for next–day availability except that it was not made in person to an employee of the bank, the check is entitled to second–day availability. Otherwise, the check is subject to the general availability schedule at 12 CFR 229.12 that applies to local and nonlocal checks. In addition, banks may invoke the exception holds described at 12 CFR 229.13 with respect to checks that generally are subject to next–day or second–availability. VerDate Jan<31>2003 21:22 May 27, 2003 Jkt 200001 branch of the depositary bank if both branches are located within the same Federal Reserve check processing region. A depositary bank also must give next–day availability for up to the first $100 of any check or checks deposited on the same banking day that are not otherwise subject to the next–day availability rule. For checks that are not subject to the next– or second–day availability rules discussed above, depositary banks 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. Appendix A to Regulation CC contains a routing number guide that assists banks in determining the maximum permissible hold periods for most deposited checks.3 The appendix lists the 9–digit routing numbers for U.S. Treasury checks, postal money orders, and checks drawn on Federal Reserve Banks and Federal Home Loan Banks. Appendix A also lists each Federal Reserve check processing office and the first four digits of the routing numbers, known as the Federal Reserve routing symbol, of the banks that are 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. Final Amendment to Appendix A Over the past few years, the Federal Reserve Banks and Federal Home Loan Banks have changed their check–related operations, including the routing numbers they use. The Board accordingly is updating appendix A to delete retired routing numbers and insert newly added ones. With respect to the Federal Reserve Bank routing number list, the Board is deleting routing numbers 0112 0048 8 and 0214 0950 9; correcting the placement of two existing routing numbers, 0220 0026 6 and 0519 0002 3; and adding a new routing number, 0711 0711 0. With respect to the Federal Home Loan Bank routing number list, the 3 Official checks (certified, cashier’s and teller’s checks) are the exception, because they are identified by routing number information that is not included in the appendix. PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 31593 Board is deleting the following numbers: 0640 0091 0; 0654 0348 0; 0724 1338 2; 0820 0125 0; 1020 0603 8; 1030 0362 9; 1040 0019 7; 1130 1750 8; 1211 3994 4; and 1222 4014 6. In addition, the Board is adding the following numbers: 0430 1862 2 and 1240 0287 4. The Board also has reorganized and clarified the existing introductory text of appendix A. These amendments become effective July 28, 2003. Information About Future Changes to Appendix A A Federal Reserve study released in 2002 found that the number of checks written in the United States had declined from approximately 50 billion annually in the mid–1990s to about 40 billion annually in 2002. Correspondingly, the number of checks processed by the Federal Reserve Banks has also declined in recent years. The Federal Reserve Banks have decided to reduce the number of locations at which they process checks in response to this changing trend in check usage and to position themselves more effectively to meet the cost recovery requirements of the Monetary Control Act of 1980. Thirteen Reserve Bank offices will no longer process checks, and the checks currently processed at those offices will be processed at other nearby offices, as follows: Offices that will no longer process checks: Offices to which check processing will be transferred Pittsburgh, PA Richmond, VA Charleston, WV Columbia, SC Miami, FL Indianapolis, IN Milwaukee, WI Peoria, IL4 Little Rock, AR Louisville, KY Omaha, NE El Paso, TX San Antonio, TX Cleveland, OH Baltimore, MD Cincinnati, OH Charlotte, NC Jacksonville, FL Cincinnati, OH Chicago, IL Chicago, IL Memphis, TN Cincinnati, OH Des Moines, IA Dallas, TX Dallas, TX 4 The Peoria office does not serve a separate check processing region. Rather, it is a satellite office of the Federal Reserve Bank of Chicago that is located in the Chicago check processing region. Because this restructuring will reduce the number of check processing regions, some banks that now are nonlocal to one another will become local. As a result, the status of some nonlocal checks in the affected regions will change. Specifically, some checks that are drawn on and deposited at banks located in the affected regions that currently are nonlocal checks will become local checks subject to faster E:\FR\FM\28MYR1.SGM 28MYR1 31594 Federal Register / Vol. 68, No. 102 / Wednesday, May 28, 2003 / Rules and Regulations availability schedules. Banks in the affected regions therefore might need to realign their internal operating systems to reflect the restructuring. Depending on their funds availability practices, banks also might need to modify their funds availability schedules and related disclosures to reflect any improved availability of funds resulting from the restructuring. Section 229.18(e) of Regulation CC requires that banks notify account holders who are consumers within 30 days of implementing a change that improves the availability of funds. The restructuring of Reserve Bank check processing operations will take VerDate Jan<31>2003 21:22 May 27, 2003 Jkt 200001 place in several phases, beginning in the second half of 2003 and ending in late 2004. The Board will amend appendix A in connection with each phase 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.5 The Board will 5 Appendix A to Regulation CC has been amended on several occasions in the past to reflect the restructuring of the Reserve Banks’ check processing operations. In 1994, the Utica regional check processing center began serving the Buffalo check processing territory (59 FR 48789, Sept. 23, 1994). In 1996, the East Rutherford operations center began serving the Jericho check processing PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 announce each phase 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. territory (61 FR 25389, May 21, 1996). In 1997, the Boston head office began serving the Lewiston check processing territory (62 FR 26220, May 13, 1997). E:\FR\FM\28MYR1.SGM 28MYR1 Federal Register / Vol. 68, No. 102 / Wednesday, May 28, 2003 / Rules and Regulations Some affected banks might prefer to make 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 all the Federal Reserve routing symbol changes to appendix A that will be made between now and the end of 2004. 5. Jacksonville. Administrative Procedure Act The operations of the Miami branch will be transferred such that banks with the following Federal Reserve routing symbols will be local to the Jacksonville branch: 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 introductory language and routing number lists are technical in nature. In addition, the routing number 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 accordingly has determined that the § 553(b) notice and comment procedures are unnecessary. 0630 0631 0632 0660 0670 1. Cleveland. The operations of the Pittsburgh branch will be transferred such that banks with the following Federal Reserve routing symbols will be local to the Cleveland head office: 0410 0412 0430 0432 0433 0434 2410 2412 2430 2432 2433 2434 6. Chicago. The operations of the Milwaukee office will be transferred such that banks with the following Federal Reserve routing symbols will be local to the Chicago head office: 2420 2421 2422 2423 2515 2519 2740 2749 2813 2830 2839 2863 The operations of the Omaha branch will be transferred such that banks with the following Federal Reserve routing symbols will be local to the Des Moines office: 0730 0739 1040 1041 1049 The operations of the Little Rock branch will be transferred such that banks with the following Federal Reserve routing symbols will be local to the Memphis branch: The operations of the Richmond head office will be transferred such that banks with the following Federal Reserve routing symbols will be local to the Baltimore branch: 0820 0829 0840 0841 0842 0843 9. Dallas. 1110 1111 1113 1119 1120 1122 1123 1140 1149 1163 4. Charlotte. The operations of the Columbia office will be transferred such that banks with the following Federal Reserve routing symbols will be local to the Charlotte branch: VerDate Jan<31>2003 2530 2531 2532 2539 21:22 May 27, 2003 Jkt 200001 2820 2829 2840 2841 2842 2843 The operations of the El Paso and San Antonio branches will be transferred such that banks with the following Federal Reserve routing symbols will be local to the Dallas head office: 2510 2520 2521 2522 2540 2550 2560 2570 0530 0531 0532 0539 2730 2739 3040 3041 3049 8. Memphis. 3. Baltimore. 0510 0520 0521 0522 0540 0550 0560 0570 2710 2711 2712 2719 2750 2759 7. Des Moines. The operations of the Charleston and Indianapolis offices and the Louisville branch will be transferred such that banks with the following Federal Reserve routing symbols will be local to the Cincinnati branch: 0420 0421 0422 0423 0515 0519 0740 0749 0813 0830 0839 0863 2630 2631 2632 2660 2670 0710 0711 0712 0719 0750 0759 2. Cincinnati. 31595 3110 3111 3113 3119 3120 3122 3123 3140 3149 3163 The Federal Reserve routing symbols assigned to all other Federal Reserve branches and offices will remain the same. PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 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 the authority delegated to the Board by the Office of Management and Budget. The final rule contains no new collections of information and proposes no substantive changes to existing collections of information pursuant to the Paperwork Reduction Act. 12 CFR Chapter II List of Subjects in 12 CFR Part 229 Banks, Banking, Federal Reserve System, Reporting and recordkeeping requirements. Authority and Issuance For the reasons set forth in the preamble, the Board is amending 12 CFR part 229 to read as follows: ■ E:\FR\FM\28MYR1.SGM 28MYR1 31596 Federal Register / Vol. 68, No. 102 / Wednesday, May 28, 2003 / Rules and Regulations 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 et seq. 2. Appendix A to Part 229 is amended as follows: a. Introductory paragraphs A and B are revised and a new paragraph C is added. b. The heading and text of the Federal Reserve Offices routing list are revised. c. The Federal Home Loan Banks routing list is revised. The additions and revisions 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 Thomson Financial Publishing Inc., as agent for the American Bankers Association. The routing number takes two forms: a fractional form and a nine–digit form. A paying bank generally is identified on the face of a check by its routing number in both the fractional form (which generally appears in the upper right–hand corner of the check) and the nine–digit form (which is printed in magnetic ink along the bottom of the check). Where a check is payable by one bank but payable through another bank, the routing number appearing on the check is that of the payable–through bank, not the payor bank. B. The first four digits of the nine–digit routing number (and the denominator of the fractional routing number) form the ‘‘Federal Reserve routing symbol,’’ and the first two digits of the routing number identify the Federal Reserve District in which the bank is located. Thus, 01 will be the first two digits of the routing number of a bank in the First Federal Reserve District (Boston), and 12 will be the first two digits of the routing number of a bank in the Twelfth District (San Francisco). Adding 2 to the first digit denotes a thrift institution. Thus, 21 identifies a thrift in the First District, and 32 denotes a thrift in the Twelfth District. C. Each Federal Reserve check processing office is listed below, followed by the Federal Reserve routing symbols of the banks that are located within the check–processing region served by that office. Because some check processing regions cross Federal Reserve District lines, there are some cases in which banks in different Federal Reserve Districts are located in the same check–processing region and therefore considered local to each other. For example, banks in Fairfield County, Connecticut are located in Second District and have Second District routing numbers (0211 or 2211), but the Windsor Locks office of the First District processes the checks of these banks. Thus, as indicated below, checks drawn on banks with 0211 or 2211 routing numbers would be local for First District banks served by the Windsor Locks office but would be nonlocal for other Second District depositary banks. * * * * * FEDERAL RESERVE BANKS 0110 0111 0210 0212 0213 0220 0310 0410 0420 0430 0440 0510 0519 0520 0530 0539 0610 0620 0630 0640 0650 0660 0710 0711 0001 0048 0120 0400 0500 0026 0004 0001 0043 0030 0050 0003 0002 0027 0020 0008 0014 0019 0019 0010 0021 0010 0030 0711 5 1 8 5 1 6 0 4 7 0 3 3 3 8 6 9 6 0 9 1 0 9 1 0 0720 0730 0740 0750 0810 0820 0830 0840 0910 0920 1010 1020 1030 1040 1110 1120 1130 1140 1210 1220 1230 1240 1250 0029 0033 0020 0012 0004 0013 0059 0003 0008 0026 0004 0019 0024 0012 0003 0001 0004 0072 0037 0016 0001 0031 0001 0 8 1 9 5 8 3 9 0 7 8 9 0 6 8 1 9 1 4 6 3 3 1 FEDERAL HOME LOAN BANKS 0110 0212 0260 0410 0420 0430 0430 0610 0710 0730 0053 0639 0973 0291 0091 0143 1862 0876 0450 0091 6 1 9 5 6 5 2 6 1 4 0740 0810 0910 1010 1011 1110 1119 1210 1240 1250 0101 0091 0091 0091 0194 1083 1083 0070 0287 0050 9 9 2 2 7 7 0 1 4 3 By order of the Board of Governors of the Federal Reserve System, May 20, 2003. Jennifer J. Johnson Secretary of the Board. [FR Doc. 03–13030 Filed 5–27–03; 8:45 am] BILLING CODE 6210–01–S
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