Establishing Access to the Federal Reserve’s Discount Window

Membership with Alloya offers convenient access to the Federal Reserve Bank’s (FRB) Discount Window Service without having to establish a relationship directly with the Fed. Once approved, funds may be requested through the FRB for swift deposit into your credit union’s account at Alloya without set-up fees, annual fees or compensating balance. Of course, the Alloya team is always available to assist and can be reached by emailing safekeeping@alloyacorp.org.

 

1. Locate your FRB district by visiting the Select Your District webpage on the FRB Discount Window website.

 

2. Complete the agreements from the OC-10 Agreements webpage on the FRB Discount Window website. Before submitting the documentation, borrowers should consult with their local FRB for any special instructions.

Additional information on how to complete the agreements can be found on the same webpage using the linked titled “Instructions for Completing Required OC-10 Agreements”.

 

3. Contact your representative at the FRB to discuss collateral options. Information about collateral options can be found on the Borrowing webpage on the FRB Discount Window website.

 

4. Choose the collateral option that best suits your needs.

 

5. Complete the required collateral applications, documents, reports and/or instructions required by your FRB district.

 

5a. (Optional) If you choose to pledge specific securities that are held in safekeeping by Alloya and have been approved by the FRB as acceptable collateral, please contact safekeeping@alloyacorp.org with the following information:

• The CUSIP and PAR amounts
• The FRB’s DTC Participation Number
• Specific instructions

 

6. Advance a test loan from the Discount Window to satisfy the regulatory requirement for “periodic testing to ensure contingent funding sources are readily available as needed” pursuant to §741.12(c). To test access to the Discount Window:

• Call your FRB district to request a test to confirm access to the Discount Window.
• Email discountwindow@alloyacorp.org with the advance amount requested and specify the FRB district from which the funds will be sent.
• View your account at Alloya the following morning to confirm the funds were placed.

 

Have more questions? Contact Alloya Corporate FCU's Safekeeping Department at safekeeping@alloyacorp.org.