House Bill 1172 Summary

• Defines "federal home loan bank" as an institution chartered under the Federal Home Loan Bank Act or its successor statute in Mississippi Code Section 83-24-7.

• Prohibits receivers from staying, enjoining, or voiding actions by federal home loan banks to exercise rights regarding collateral pledged under security agreements during insurer delinquency proceedings after the tenth day following commencement.

• Requires federal home loan banks to repurchase excess capital stock held by insolvent insurer members (beyond minimum required investment) and provide processes within 10 business days for releasing collateral and handling account operations.

• Prevents liquidators from disavowing pledge agreements, security agreements, or similar arrangements to which federal home loan banks are parties, and prohibits avoidance of transfers under fraudulent conveyance or preference rules unless made with actual intent to defraud creditors.

• Allows federal home loan banks to offer distressed insurer members options to renew or restructure advances to defer prepayment fees, subject to market conditions, applicable policies, and federal law compliance.