12th District (San Francisco) Borrower-In-Custody Program Information

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

Overview of Borrower in Custody Program– Information about the program and eligibility requirements.

Borrower in Custody (BIC) Guidelines [PDF; 103K] – 12th District-specific guidelines to the BIC program, includes pledging requirements, inspection details, templates of required documents, etc.


The Borrower In Custody program underwent changes in August 2013. See our Frequently Asked Questions [PDF; 151K].



A financial institution must submit an application to the FRB to participate in the BIC program. At a minimum, the institution must satisfy the following criteria:
  • CAMELS composite rating of "1" or "2" (Composite ratings of "3" are generally acceptable1)
  • "Adequately" or "Well" capitalized as evidenced by most recent capital ratios
  • Acceptable controls in place to ensure satisfactory compliance with the BIC program

1FBO and corresponding branches are in satisfactory condition


Application Process

If your institution has already filed necessary lending agreements and authorizing resolutions under the terms set forth in Federal Reserve's lending agreement, Operating Circular No. 10 [PDF; 249K]offsite link, then submit the following application and documentation:


  1. Application for Borrower-in-Custody Arrangement [MS Word; 79K]
  2. Irrevocable Power of Attorney [MS Word; 37K] - This document enables us to act on the institution's behalf to negotiate the collateral under the provision of Operating Circular #10.
  3. Appendix A Instruction & Template [MS Word; 35K] - This document is subject to terms of the Letter of Agreement for OC10 and indicates the physical location of the loan documents and the type of loans that are being pledged. The Appendix A is also completed on the applying institution's bank letterhead.
  4. Your Bank's internal credit risk ratings definition - This is reviewed to determine underwriting methods used by the pledging bank to assess credit risks and potential loss.
  5. Your Bank's Internal Loan Policy handbook and/or guidelines.
  6. If your institution images loans or generates them electronically, an Imaging Questionnaire [MS Word; 44K] must be completed.
  7. If the loans are held by a third party custodian, including subsidiaries or affiliates, the Form of Agreement for Third-Party Custodian to Hold Collateral [MS Word; 38K] must be completed.
  8. Test Pledge Listing Submission- An initial listing of proposed loans pledged for the 12th District along with a Collateral Transmittal & Custody Receipt for Pledge of Loans (Form BIC 1) [MS Word; 43K].


The completed Application for BIC and related required documents should be mailed to:


Credit Risk Management
Federal Reserve Bank of San Francisco
101 Market Street, MS 830
San Francisco, CA 94105

Contact us for additional information.