In an on-going effort to consolidate all check processing to the Federal Reserve’s Cleveland Reserve Bank by early next year, the Reserve Bank of Philadelphia will stop processing checks on December 12, 2009. As of that date, institutions currently served by the Philadelphia office for check-processing purposes will be reassigned to the head office of the Cleveland Reserve Bank, located in the Fourth Federal Reserve District.
Regulation CC provides maximum hold-periods for checks between the time a deposit is received and the time funds are available for withdrawal. Generally, funds that are deposited by a local check must be available sooner than funds deposited by a non-local check. A check is considered local if it is payable by a financial institution located in the same Federal Reserve check-processing district as it was deposited. Appendix A to Regulation CC has a routing number guide to assist in identifying local and non-local checks. The guide determines the maximum hold-period by listing each of the Federal Reserve Bank’s check processing offices and the routing symbol of each financial institution it serves. Financial institutions in the same check processing office are considered local to one another.
The Fed issued a final rule amending appendix A of Regulation CC to re-structure its check-processing operations in Philadelphia, located in the Third Federal Reserve District. Some checks deposited in the Third Federal Reserve District that are currently non-local will become local checks and subject to shorter permissible hold periods. As consolidation of Fed processing continues, affected credit unions may need to amend their availability schedules and related disclosures and provide members with notices of these changes.
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