FRB Atlanta BIC Program

Last Updated: 07.01.2025
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.

Borrower-in-Custody Overview - This document provides an overview of the Borrower-In-Custody (BIC) of collateral arrangement allows collateral to be maintained at the pledging institution rather than being delivered to the Federal Reserve Bank (FRB) or a third-party custodian.

Application Process
If you qualify and would like to apply for the BIC Program, complete the following documents and submit the originals to collateral@atl.frb.org.

1. BIC Certification and Electronic Collateral Addendum  - Complete one BIC certification, including each loan type your institution plans to pledge and each location where loans are physically housed. Complete the Electronic Collateral Addendum only if your institution plans to pledge e-sign and/or image & destroy loans.

   The BIC Certification document must be signed by an authorized official of your institution, as designated by the OC-10 Authorizing Resolutions for Borrowers on file with the FRB. Additionally, the BIC Certification document must be reviewed and signed by an internal or external auditor.

2. Collateral Pledge Form and Collateral Schedule - Your institution is responsible for submitting a Collateral Pledge Form and Collateral Schedule no later than the 10th day of the month with loan data as-of the end of the preceding month. The monthly Collateral Pledge Form must be signed and 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.

   The format of the Collateral Schedule will depend on whether your institution meets the in-scope definition for the new ALD (automated loan deposit) requirements:

   • If your institution is defined as in-scope, you will need to submit a Collateral Schedule via a pipe-delimited format file per the file format specifications noted. In-scope institutions will need to report if a loan is a participation or syndication loan.
   • If your institution does not meet the definition of an in-scope institution, you will need to submit an out-of-scope Collateral Schedule via an Excel file template.
   • Additional information on pledging requirements can be found on the Pledging Collateral webpage.
   • Zix Instruction Guide: This document is an instructional guide for emailing collateral reports to the Federal Reserve through ZixCorp, an approved method of secure transmission.
     
     

3. Sample of all types of loan notes you plan to pledge - Include the Promissory Note, Mortgage/Deed of Trust, and Security Agreement, where applicable, for each sample. Minimum of one sample loan for each loan category code interested in pledging. Do not send blank documents. Loan acceptance criteria can be found on the Collateral Eligibility webpage.

   FRB Atlanta accepts certain syndicated loans as collateral. Due to the restrictive language present in many syndicated loan deals (including, but not limited to, requiring consent of various parties to pledge, assign, or sell the loan), we only accept loans that meet all of the following criteria, typically found in the Successors and Assigns section of the credit agreement:

   1. allows for pledge or assignment of a lender's security interest to a Federal Reserve Bank.
   2. dictates that no requirements in the Successors or Assigns section would apply to any such pledge or assignment to a Federal Reserve Bank, and
   3. ensures that no obligations of the lender are able to be transferred to a Federal Reserve Bank through such pledge or assignment (e.g., the requirement to fund advances under a line of credit)
   
   

   Sample of acceptable language:
   Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or any other central bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such a Lender as a party hereto.

4. Perfection for FHLB, Corporate Credit Union, and Banker's Bank Members - If a lien has been placed on your institution's assets as part of an existing or prior loan pledge, email us at: collateral@atl.frb.org for next steps.

5. OC-10 Agreements - If your institution does not have OC-10 documents on file or if updates to existing documents are needed, visit the OC-10 Agreements page to complete and submit your documents to: atl.discountwindow@atl.frb.org.

At the time we receive your BIC application, the FRB will complete a UCC-1 filing to perfect its interest in your collateral pledged.

Contact us for questions and/or additional information.

Withdrawal Process

If you would like to withdraw from the BIC program or withdraw entire loan categories, complete the following document and submit to collateral@atl.frb.org.

Withdrawal Form - This document should be submitted when withdrawing an entire pledge portfolio. This form must be signed and emailed by an authorized official of your institution, as designated by the OC-10 lending agreements on file with the Federal Reserve Bank.