IL SB1297

Amends the Illinois Insurance Code to add protections for Federal Home Loan Banks in insurance company insolvency proceedings, preventing them from being stayed or enjoined from enforcing rights to pledged collateral.

Adds new subsection (o) to Section 204 exempting Federal Home Loan Bank security agreements and related collateral arrangements from court injunctions during rehabilitation, liquidation, or conservation proceedings.

Adds new subsection (m)(D) to Section 204 excluding transfers of money or property related to Federal Home Loan Bank security agreements from being classified as prohibited or voidable transfers during insolvency.

Modifies Section 189 to make injunction provisions subject to the Federal Home Loan Bank exclusion set forth in the new subsection (o) of Section 204.

Takes effect upon becoming law.