WASHINGTON (8/21/08)—Credit unions affected by changes in the Federal Reserve’s check processing operations in the fourth district may need to amend their availability schedules and related disclosures and provide their members with notice of these changes. In a final rule analysis, the Credit Union National Association (CUNA) reminds credit unions that the Fed’s Cincinnati branch office of the Federal Reserve Bank of Cleveland no longer will process checks as of Oct. 18. Financial institutions currently served by the Cincinnati branch will be reassigned to the head office of the Federal Reserve Bank of Cleveland. The consolidation, affected by amending Appendix A of the Fed’s Regulation CC, is one step in the Fed’s overall plan to reduce the number of locations at which they process checks. CUNA asks credit unions to be aware that:
* When the changes are implemented, some checks deposited in the Fourth District that are currently nonlocal checks will become local checks and subject to shorter permissible hold periods. * Regulation CC requires that financial institutions notify accountholders within 30 days after implementing a change that improves the availability of funds. * Credit unions that are affected may need to amend their availability schedules and related disclosures and provide their members with notice of these changes.
Read the CUNA analysis using the link below.