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FEDERAL RESERVE SYSTEM
12 CFR Part 229
{Regulation CC; Docket No. R-1204]
Availability of Funds and Collection of Checks
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule; technical amendment.
SUMMARY: The Board of Governors is amending appendix A of Regulation CC to
delete the reference to the Columbia check processing office of the Federal Reserve Bank
of Richmond and reassign the Federal Reserve routing symbols currently listed under that
office to that Reserve Bank’s Charlotte office and delete the reference to the Louisville
check processing office of the Federal Reserve Bank of St. Louis and reassign the Federal
Reserve routing symbols currently listed under that office to the Cincinnati office of the
Federal Reserve Bank of Cleveland. These amendments reflect the restructuring of check
processing operations within the Federal Reserve System.
DATES: The final rule will become effective on August 28, 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: 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.”
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,
1
For purposes of Regulation CC, the term “bank” refers to any depository institution, including
commercial banks, savings institutions, and credit unions.
-2known 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 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, the
Columbia office of the Federal Reserve Bank of Richmond will cease processing checks
on August 28, 2004, and banks with routing symbols currently assigned to that office for
check processing purposes will be reassigned to that Reserve Bank’s Charlotte office.
The Louisville office of the Federal Reserve Bank of St. Louis will also cease processing
checks on August 28, 2004, and banks with routing symbols currently assigned to that
office for check processing purposes will be reassigned to the Cincinnati office of the
Federal Reserve Bank of Cleveland. As a result of these changes, 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. The Cincinnati office will serve banks located in the Fourth and Fifth Federal
Reserve Districts as of June 26, 2004, when banks currently assigned to the Charleston
office are reassigned to the Cincinnati office.3 The Cincinnati office also will serve
banks located in the Eighth Federal Reserve District as of August 28, 2004, when banks
currently assigned to the Louisville office are reassigned to the Cincinnati office. After
these changes take effect, banks located in the Cincinnati check processing region no
longer will be able to 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 banks, the Board accordingly is
amending the lists of routing symbols associated with the Federal Reserve Banks of
Cleveland, Richmond, and St. Louis to reflect the transfer of operations (1) from the
Richmond Reserve Bank’s Columbia office to that Reserve Bank’s Charlotte office and
(2) from the St. Louis Reserve Bank’s Louisville office to the Cleveland Reserve Bank’s
Cincinnati office. To coincide with the effective date of the underlying check processing
changes, the amendments are effective August 28, 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.4 The Federal Reserve routing symbols assigned to all other
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 final amendments, the Reserve Banks
are striving 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 www.frbservices.org.
3
4
See 69 FR 19921, April 15, 2004.
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.
-3Federal Reserve branches and offices will remain the same at this time. The Board of
Governors, however, intends to issue similar notices at least sixty days prior to the
elimination of check operations at some other Reserve Bank offices, as described in the
May 2003 Federal Register document.
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
§ 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
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 (1) delete the reference to the Columbia office of the
Federal Reserve Bank of Richmond and reassign the routing symbols listed under that
office to that Reserve Bank’s Charlotte office and (2) delete the reference to the
Louisville office of the Federal Reserve Bank of St. Louis 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, 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.
-412 CFR Chapter II
List of Subjects in 12 CFR Part 229
Banks, Banking, 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:
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. The Fourth, Fifth, and Eighth 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
0421
0422
0423
0515
2420
2421
2422
2423
2515
-50519
0813
0830
0839
0863
2519
2813
2830
2839
2863
Columbus Office
0440
0441
0442
2440
2441
2442
FIFTH FEDERAL RESERVE DISTRICT
[Federal Reserve Bank of Richmond]
Baltimore Branch
0510
0514
0520
0521
0522
0540
0550
0560
0570
2510
2514
2520
2521
2522
2540
2550
2560
2570
Charlotte Branch
0530
0531
0532
0539
2530
2531
2532
2539
* * * * *
EIGHTH FEDERAL RESERVE DISTRICT
[Federal Reserve Bank of St. Louis]
Head Office
0810
0812
0815
2810
2812
2815
-60819
0865
2819
2865
Memphis Branch
0820
0829
0840
0841
0842
0843
2820
2829
2840
2841
2842
2843
* * * * *
By order of the Board of Governors of the Federal Reserve System, acting
through the Secretary of the Board under delegated authority, June 22, 2004.
(signed Jennifer J. Johnson)
Jennifer J. Johnson
Secretary of the Board.