FINAL RULE--AMENDMENT TO REGULATION CC.

The Board of Governors is amending 12 C.F.R. Part 229, its Regulation CC (Availability of Funds and Collection of Checks). The Board recognizes that banks are currently dedicating their automation resources to addressing Year 2000 and leap year computer problems and may be challenged to make and test other programming changes, including those that may be required to comply with Regulation CC's merger transition provisions, without jeopardizing their Year 2000 or other programming efforts. Therefore, the Board is amending Regulation CC to allow banks that consummate a merger on or after July 1, 1998, and before March 1, 2000, greater time to implement software changes related to the merger.

Effective April 1, 1999, 12 C.F.R. Part 229 is amended as follows:

Part 229--Availability of Funds and Collection of Checks (Regulation CC)

1. The authority citation for Part 229 continues to read as follows:

Authority: 12 U.S.C. 4001 et seq.

2. In section 229.19, paragraph (g) is redesignated as paragraph (g)(1), a heading is added for newly designated paragraph (g)(1), and a new paragraph (g)(2) would be added to read as follows:

Section 229.19--Miscellaneous

(g) Effect of merger transaction.

   (1) In general. ***

   (2) Merger transactions on or after July 1, 1998, and before March 1, 2000.
   If banks have consummated a merger transaction on or after July 1, 1998,
   and before March 1, 2000, the merged banks may be considered separate banks
   until March 1, 2001.

3. Section 229.40 is redesignated as section 299.40 (a), a heading is added for newly designated paragraph (a), and a new paragraph (b) would be added to read as follows:

Section 229.40--Effect of merger transaction.

(a) In general. ***

(b) Merger transactions on or after July 1, 1998, and before March 1, 2000. If banks have consummated a merger transaction on or after July 1, 1998, and before March 1, 2000, the merged banks may be considered separate banks until March 1,2001.3