The Board of Governors of the Federal Reserve System has approved amendments to Appendix A of Regulation CC that reflect the restructuring of the Federal Reserve Banks' check-processing operations in the Fourth, Eleventh and Twelfth Districts, which may affect certain depository institutions in the Second District. Specifically, checks drawn on institutions now assigned to the head office of the Federal Reserve Bank of Dallas and on institutions currently assigned to the Los Angeles branch of the Federal Reserve Bank of San Francisco will become local checks under Regulation CC for institutions in the former Buffalo check-processing zone. All such institutions will become part of the Federal Reserve Bank of Cleveland check-processing region. The change is effective on October 17, 2009, for checks drawn on Dallas-zone institutions and on November 14, 2009, for checks drawn on Los Angeles-zone institutions.
This change will affect the maximum permissible hold period for certain checks customers deposit on or after the effective date. Some checks deposited in the affected regions that currently are nonlocal checks will become local checks that are subject to shorter permissible hold periods.
The Board also provided advance notice that the Federal Reserve Banks intend to further streamline their check-processing infrastructure so that by early next year there will be a single check-processing region for purposes of Regulation CC. At that time, there will no longer be any checks that are considered nonlocal under Regulation CC.
For complete details, see the Board’s press release and the accompanying Federal Register notice with a listing of all affected routing numbers.