H.F. No. 1976 Summary

• Establishes that federal home loan banks cannot be stayed or prohibited from exercising rights regarding collateral pledged by insurer-members.

• Requires federal home loan banks to repurchase excess capital stock held by insurer-members when exercising collateral rights during a delinquency proceeding, subject to federal regulations and the bank's capital plan.

• Mandates that within ten business days of a receiver's request, federal home loan banks must provide a process and timeline for releasing collateral, handling fees and accounts, and addressing stock redemption or repurchase.

• Requires federal home loan banks to provide options for insurer-members in delinquency proceedings to renew or restructure loans to defer prepayment fees, subject to market conditions and federal compliance requirements.

• Prohibits receivers from voiding transfers made under federal home loan bank security agreements in the ordinary course of business, except for transfers made with intent to defraud or hinder creditors.