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.

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

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:

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. Irrevocable Power of Attorney  - This document enables us to act on the institution's behalf to negotiate the collateral under the provision of OC-10.
  3. Appendix A Instruction & Template  - This document is subject to terms of the Letter of Agreement for OC-10 and indicates the physical location of the original hardcopy loan documents and the type of loans that are being pledged. This includes any legal documents held by third-party custodians.  In the case of loans in electronic form, indicate where the loans are maintained (internal or external).  Institutions are required to execute the Appendix A on their letterhead.
  4. The institution's internal loan policy handbook and/or guidelines including the internal credit risk rating definitions. This is to determine underwriting methods used by the pledging institution in assessing credit risks and potential losses of loans.
  5. If the loans or any legal agreements are held by a third party custodian, including subsidiaries or affiliates, the Form of Agreement for Third-Party Custodian to Hold Collateral must be completed. In addition, the corresponding third-party servicing agreement between the institution and vendor must be submitted for review. If applicable, attach the most recent third party review by audit.
  6. If the institution originates loan documentation in electronic form or images physical loan documentation, an Imaging Questionnaire must be completed.  It is expected that the institution have reasonable processes and procedures in place, governing the use of electronic loan documentation1. If documents will be imaged in the future, please contact Credit Risk Management at (866) 974-7475 or

The completed BIC Application and related required documents should be emailed to or 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.



1. E.g. If the institution’s practice is to image and destroy/retain physical legal documentation as defined in the BIC Guidelines - Attachment: Table 1 - Legal, Supporting/Collateral and Credit Documentation Requirement Matrix, processes and procedures must be outlined in the institution’s internal policy and/or procedures.