HF 3108 Summary

• Federal home loan banks cannot be stayed or prohibited from exercising rights over collateral pledged by insurer-members after seven days following the filing of a delinquency proceeding.

• Federal home loan banks must repurchase excess capital stock held by insurer-members when exercising collateral rights, if permissible under applicable laws and consistent with the bank's capital practices.

• Within ten business days of a receiver's request, federal home loan banks must provide a process and timeline for releasing excess collateral, releasing remaining collateral after loan repayment, paying fees, and redeeming or repurchasing stock.

• Federal home loan banks must provide options for insurer-members in delinquency proceedings to renew or restructure loans to defer prepayment fees, subject to market conditions and applicable policies.

• Receivers are prohibited from voiding transfers of money or property under federal home loan bank security agreements made in ordinary course and compliance with bank agreements, except transfers made with intent to defraud.