CT SB00187

Exempts Federal Home Loan Banks (as defined in 12 USC 1422) from automatic stays, injunctions, and other receivership proceedings that would otherwise apply to insurance company delinquencies, allowing them to exercise rights under pledge, security, credit, loan, advance, and guarantee agreements.

Prohibits receivers from avoiding transfers or obligations involving Federal Home Loan Banks, except in cases of actual intent to hinder, delay, or defraud; removes these transactions from the one-year lookback period for fraudulent transfers.

Prevents the avoidance of preferences involving Federal Home Loan Banks, protecting their rights to pursue collateral and maintain security interests in insurer assets.

Requires Federal Home Loan Banks to repurchase excess capital stock from member insurers in delinquency proceedings when the bank exercises collateral rights, subject to regulatory and capital constraints.

Mandates Federal Home Loan Banks provide receivers with a timeline (within 10 business days) for releasing collateral, repaying fees, redeeming stock, and exploring loan renewal or restructuring options to defer prepayment fees.

All provisions effective October 1, 2014.