Senate Bill 154 Summary

• Amends Delaware insurance law to prevent courts from issuing injunctions that would prevent Federal Home Loan Banks (FHLBanks) from exercising rights over collateral pledged by Delaware insurance companies during insolvency proceedings.

• Prohibits insurance company receivers from voiding transfers of collateral made to FHLBanks in the ordinary course of business and in compliance with advance agreements, except for transfers made with actual intent to defraud.

• Requires FHLBanks to provide receivers with processes for releasing excess collateral, releasing collateral after full repayment, and addressing prepayment fees and stock redemptions within 10 days of request.

• Adds definitions for "Federal Home Loan Bank," "FHLBank Act," and "Insurer-Member" to Delaware's insurance code.

• Takes effect 90 days after enactment and applies only to insolvency proceedings commenced after the bill's enactment, intended to enable Delaware insurers to access FHLBank funding on terms comparable to federally insured depository institutions.