OCC 2004-49  
OCC Bulletin

Subject:      Check Clearing for the 21st Century Act (Check 21) 
              and 12 CFR 229 Availability of Funds and Collection
              of Checks (Regulation CC)                      

Description:  Availability of FFIEC's InfoBase for Check 21 and 
              Updated Examination Procedures for Regulation CC

Date:         November 4, 2004

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 recently
amended 12 CFR 229, Availability of Funds and Collection of
Checks (Regulation CC), which implements the Check Clearing for
the 21st Century Act (Check 21).  Model form C-5A in Appendix C
was effective on August 4, 2004, and paragraph (4) of Appendix D
will become effective on January 1, 2006.  All other changes are
effective on October 28, 2004.  The Federal Financial
Institutions Examination Council's Task Force on Consumer
Compliance approved updated interagency Regulation CC examination
procedures for consumer compliance issues on October 6, 2004.
These examination procedures are attached.

The major changes to the examination procedures relate to the
requirements of the Check 21 Act that apply to banks, including a
model consumer awareness disclosure and other model notices and
expedited recrediting requirements.  They also update and clarify
some existing provisions of the regulation.

Also, October 12, 2004, the Federal Financial Institutions
Examinations Council (FFIEC) released a Check 21 InfoBase.  The
Check 21 InfoBase contains a training presentation that provides
a concise overview of the act and its implementing regulation, an
example of check processing under Check 21, information on
consumer compliance and other requirements of the act and
regulation, and an explanation of the examination concepts for
consumer compliance issues.  The InfoBase also contains
additional print and online resources that include the
examination procedures, frequently asked questions, the act
itself, the implementing regulation (Regulation CC), a glossary
of relevant terms, and links to other resources that may be
helpful in understanding the act.  The InfoBase is accessible at
[http://www.ffiec.gov].  The OCC will be providing its examiners
and appropriate staff members this information on a compact disk.

The OCC plans to incorporate these procedures in an update to the
Comptroller's handbook series.  Until the revised handbook is
issued, examiners should use the attached procedures.  Questions
about the Regulation CC and these examination procedures may be
directed to your supervisory office or the Compliance Department
at (202) 874-4428.


_____________________________
Ann F. Jaedicke
Deputy Comptroller for Compliance

Attachment:  Examination Procedures
             [fttp://www.occ.treas.gov/ftp/bulletin/2004-49a.pdf]