BR 991 — AN ACT relating to delinquency proceedings involving insurer-members of federal home loan banks.

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The bill amends existing statutes to modify the definitions related to insurer delinquency proceedings and introduces specific provisions governing federal home loan banks' interactions with insurer-members in such proceedings.

• KRS 304.33-030

  Commissioner means the commissioner of the Department of Insurance of this state;

  Removes the definition of 'Commissioner' from the statute.

• KRS 304.33-030

  State has the meaning defined in Subtitle 1 of this chapter;

  Removes the definition of 'State' from the statute.

• KRS 304.33-030

  The term also includes claims which have become liens upon specific assets by reason of judicial process, except where they have been invalidated; → Shall include claims which have become liens upon specific assets by reason of judicial process, except where they have been invalidated;

  Clarifies the definition of 'Secured claim' in the statute.

• A federal home loan bank shall not be stayed or otherwise prohibited by a court from exercising its rights regarding collateral pledged by an insurer-member for more than ten (10) days following the date a temporary restraining order, preliminary injunction, or permanent injunction is issued by the court pursuant to Section 3 of this Act.

  Establishes that federal home loan banks can exercise collateral rights without court interference for a specified time.

• Not later than ten (10) days after the date of appointment of a receiver in a proceeding under this subtitle involving an insurer-member, the federal home loan bank shall provide to the receiver a process and timeline for the release of any collateral held by the federal home loan bank that exceeds the amount that is required to support the secured obligation of the insurer-member.

  Mandates federal home loan banks to communicate collateral release procedures to receivers promptly.

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