S.F. No. 3049 Summary

• Federal home loan banks cannot be stayed or prohibited from exercising rights regarding 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, handling fees and accounts, and redeeming or repurchasing stock.

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

• Receivers are prohibited from voiding transfers or obligations under federal home loan bank security agreements made in the ordinary course of business, except where transfers were made with intent to hinder, delay, or defraud creditors.