Legislative record

Federal Home Loan Banks.

Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates the business of insurance in the state. Existing law generally regulates insolvency and delinquency proceedings for insurers. This bill would prohibit a Federal Home Loan Bank (FHLB) from being stayed, enjoined, or prohibited from exercising or enforcing any right or cause of action against collateral pledged by an insurer-member or an FHLB insurer-member under any FHLB security agreement, as specified. Existing law generally provides for the voiding of specified transfers during insolvency proceedings for insurers. This bill would prohibit a receiver, rehabilitator, liquidator, or conservator from voiding any transfer of, or any obligation to transfer, money or other property arising under or in connection with any FHLB security agreement with an insurer-member unless the transfer was made with actual intent to hinder, delay, or defraud either existing or future creditors. This bill would define terms for purposes of these provisions.