+--------+---+------------------------+--------+----------------------+---+
| # O    | # |                        |        |                      | # |
|        | # |                        |        |                      |   |
| ##     | # |                        |        |                      |   |
|        | # |                        |        |                      | # |
|        |   |                        |        |                      |   |
|        | O |                        |        |                      |   |
|        | C |                        |        |                      | # |
|        | C |                        |        |                      | # |
|        |   |                        |        |                      |   |
|        | 2 |                        |        |                      |   |
|        | 0 |                        |        |                      |   |
|        | 0 |                        |        |                      |   |
|        | 3 |                        |        |                      |   |
|        | - |                        |        |                      |   |
|        | 2 |                        |        |                      |   |
|        | 6 |                        |        |                      |   |
+--------+---+------------------------+--------+----------------------+---+
|        | * |                        |        |                      |   |
|        | * |                        |        |                      |   |
|        | O |                        |        |                      |   |
|        | C |                        |        |                      |   |
|        | C |                        |        |                      |   |
|        | B |                        |        |                      |   |
|        | U |                        |        |                      |   |
|        | L |                        |        |                      |   |
|        | L |                        |        |                      |   |
|        | E |                        |        |                      |   |
|        | T |                        |        |                      |   |
|        | I |                        |        |                      |   |
|        | N |                        |        |                      |   |
|        | * |                        |        |                      |   |
|        | * |                        |        |                      |   |
+--------+---+------------------------+--------+----------------------+---+
| ## Com |   |                        |        |                      |   |
| ptroll |   |                        |        |                      |   |
| er of  |   |                        |        |                      |   |
| the Cu |   |                        |        |                      |   |
| rrency |   |                        |        |                      |   |
|        |   |                        |        |                      |   |
| > A    |   |                        |        |                      |   |
| dminis |   |                        |        |                      |   |
| trator |   |                        |        |                      |   |
| > of   |   |                        |        |                      |   |
| > Na   |   |                        |        |                      |   |
| tional |   |                        |        |                      |   |
| >      |   |                        |        |                      |   |
|  Banks |   |                        |        |                      |   |
+--------+---+------------------------+--------+----------------------+---+
| ## Su  |   | ## Expedited F         | ##     | ## Revisions to Rout |   |
| bject: |   | unds Availability Act  | Descri | ing Numbers and Chec |   |
|        |   |                        | ption: | k Processing Regions |   |
+--------+---+------------------------+--------+----------------------+---+

**TO:** Chief Executive Officers and Compliance Officers of All National
Banks, Department and Division Heads, and All Examining Personnel

The Board of Governors of the Federal Reserve System (Board) has revised
Regulation CC (12 CFR 229), the implementing regulation for the
Expedited Funds Availability Act, 12 USC 4001 *et seq*. Specifically,
the Board amended Appendix A to Regulation CC, the Routing Number Guide
to Next-Day Availability Checks and Local Checks. The final rule becomes
effective on July 28, 2003.

Under Regulation CC, 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 (FRB) or a
Federal Home Loan Bank (FHLB); 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 branch of the depositary bank
if both branches are located within the same Federal Reserve check
processing region. The Board's final rule updates Regulation CC's list
of FRB and FHLB routing numbers as of the effective date.

For checks that are not subject to the next- or second-day availability
rules, banks generally must provide faster availability for funds
deposited by a "local check" than for funds deposited 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. The Board's final rule advises banks about
future amendments to Regulation CC (to be published in the Federal
Register at least 60 days before the effective date) that will reduce
the number of check processing regions from 44 to 32. The result of
these changes will be that more checks in the affected regions will be
considered "local" when deposited, and thus subject to the rules for
faster funds availability. These amendments will take effect on a
staggered basis beginning in the second half of 2003 and ending in late
2004. The Board notes, however, that affected banks may prefer to make
all of their processing and availability changes prior to the effective
dates of these amendments.

A copy of the Board's final rule is attached. You may direct any
questions to your supervisory office, the Compliance Division at (202)
874-4428, or the Community and Consumer Law Division at (202) 874-5750.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

David G. Hammaker

Deputy Comptroller for Compliance

Attachment: [68 FR
31592](http://www.occ.treas.gov/fr/fedregister/68fr31592.pdf)