MS HB50

Requires federal home loan banks to establish a collateral liquidation plan for delinquent borrowers to satisfy outstanding advances and other credit obligations to the bank.

Mandates the bank exercise liquidation options including foreclosure, sale, lease, or disposal of collateral, or otherwise exercise rights as a secured party.

Requires banks to consider the nature and amount of collateral, markets where collateral is normally traded or sold, and other relevant factors when liquidating.

Banks must act in good faith and in a commercially reasonable manner consistent with applicable law when executing the liquidation plan.

Effective date: July 1, 2023.