CT SB00323

Modifies automatic stay provisions in insurance insolvency proceedings to allow Federal Home Loan Banks (as defined in 12 USC 1422) to exercise rights under pledge, security, credit, collateral, loan, advance, reimbursement or guarantee agreements for up to 10 business days after a delinquency proceeding is instituted.

Exempts transfers and obligations arising from Federal Home Loan Bank agreements from being avoided as fraudulent transfers or preferences by receivers in insurance liquidation proceedings, unless made with actual intent to hinder, delay, or defraud.

Requires Federal Home Loan Banks to repurchase excess capital stock from member insurers within 7 business days after a delinquency proceeding begins, subject to the bank's good faith determination regarding legal permissibility and capital constraints.

Requires Federal Home Loan Banks to provide receivers with a process and timeline within 10 business days for releasing collateral, processing fees, managing accounts, and redeeming stock held by the distressed insurer.

Requires Federal Home Loan Banks to provide receivers with available loan renewal or restructuring options upon request, subject to market conditions and applicable federal and bank policies.