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Last Updated: 4/16/2009

Please note: This information is specifically for the Federal Reserve Bank of Atlanta's BIC Program. Information regarding your Federal Reserve Bank's BIC program may be available on your district's Contacts & Resources page.



Overview
The BIC booklet describes the Borrower-in-Custody (BIC) program, including eligible collateral and requirements.
Application Process
If you qualify and would like to apply for the BIC Program, complete the following documents and submit the originals to the Federal Reserve Bank.

(1) BIC Certifications - Please complete all of the applicable certifications based on the type of collateral your institution plans to pledge:
  • BIC Certification [MS Word; 102K]
    The BIC Certification documents must be signed by an authorized official of your institution, as designated by the OC 10 Authorizing Resolutions for Borrowers on file with the Federal Reserve Bank. Additionally, the BIC Certification documents must be reviewed and signed by an internal or external auditor. At the time we receive your BIC Certification, the Federal Reserve Bank will complete a UCC 1 filing to perfect its interest in your collateral pledge.

(2) BIC Pledge Form/Withdrawal Form - This document should be submitted with loan listings.


(3) Collateral Schedule - If your institution is approved for the BIC program, you will be responsible for submitting a summary cover letter and a monthly collateral schedule, no later than the 10th day of the month. The monthly collateral schedule must be signed or emailed by an authorized official of your institution, as designated by the OC 10 Lending Agreements on file with the Federal Reserve Bank. Your institution may want to review these legal agreements and revise as needed to ensure it meets your needs in relation to the BIC program.


(4) Assignment - To be completed for perfection purposes.


(5) Electronic Pledge Authorization - Required for sending monthly pledge reports via email.

(6) FHLB of Atlanta Comfort Letter Guidelines - Guidelines from the Federal Home Loan Bank of Atlanta on pledging collateral where both the FHLB and the Federal Reserve have collateral liens.  Members of the FHLB of Cincinnati or FHLB of Dallas should contact Federal Reserve Bank collateral analysts to discuss these pledge arrangements.

(7) Loan review policy and/or internal risk rating documentation

(8) Sample of all types of loan notes you plan to pledge (do not send blank documents)

(9) Please notify a collateral analyst if your institution meets one or both of the following criteria as additional documentation may be required:

  • If your institution is in the process or currently images your loan notes and/or documentation.
  • If your institution will be pledging participated loans - additional documentation will be required.



The completed documentation for BIC and related required documents (OC10 Legal agreements) should be mailed to:

Federal Reserve Bank of Atlanta
Credit and Risk Management
1000 Peachtree Street, N.E.
Atlanta, GA 30309-4470


Any electronic information can be sent via email by registering/login to the Federal Reserve Secure Message Center offsite link. Once registered, secure email can then be sent to discountwindow@atl.frb.org.

Contact us for questions and/or additional information.
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