Discount Window and Payment System Risk Contact Information for San Francisco

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.

Collateral– Overall information on eligibility, valuation, and pledging of collateral to the Discount Window, including the Borrower in Custody Program

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



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 acceptable[1])
  • "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, then submit the following application and documentation: 

  1. Application for Borrower-in-Custody of Collateral Arrangement 
  2. The institution's internal loan policy handbook and/or guidelines including the internal credit risk rating definitions: To determine underwriting methods used by the pledging institution in assessing credit risks and potential losses of loans.
  3. If the primary legal documents, including Certificate of Titles, are held by a third party custodian, including subsidiaries or affiliates, the Appx 5 Form of Agreement for Third-Party Custodian to Hold Collateral (Agreement) must be completed and can be found in the OC-10 Agreements page. If the Agreement cannot be executed, the corresponding servicing agreement between the institution and custodian must be submitted for review.
  4. If the institution originates loans and leases that are digitally signed and stored electronically, and/or signed on paper and then imaged and stored electronically with the paper original destroyed, an Electronic Collateral Attestation and Questionnaire (Electronic Collateral Questionnaire) must be completed. 

The completed BIC Application and related required documents should be emailed to
Contact us for additional information.