Bill Text: IA SF2133 | 2013-2014 | 85th General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act relating to federal home loan bank rights regarding collateral pledged by insurer-members. (Formerly SSB 3120.) Effective 7-1-14.
Spectrum: Committee Bill
Status: (Passed) 2014-03-14 - Signed by Governor. S.J. 586. [SF2133 Detail]
Download: Iowa-2013-SF2133-Enrolled.html
Bill Title: A bill for an act relating to federal home loan bank rights regarding collateral pledged by insurer-members. (Formerly SSB 3120.) Effective 7-1-14.
Spectrum: Committee Bill
Status: (Passed) 2014-03-14 - Signed by Governor. S.J. 586. [SF2133 Detail]
Download: Iowa-2013-SF2133-Enrolled.html
Senate
File
2133
AN
ACT
RELATING
TO
FEDERAL
HOME
LOAN
BANK
RIGHTS
REGARDING
COLLATERAL
PLEDGED
BY
INSURER-MEMBERS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
507C.2,
Code
2014,
is
amended
by
adding
the
following
new
subsections:
NEW
SUBSECTION
.
10A.
“Federal
home
loan
bank”
means
a
federal
home
loan
bank
established
under
the
federal
Home
Loan
Bank
Act,
12
U.S.C.
§1421
et
seq.
NEW
SUBSECTION
.
16A.
“Insurer-member”
means
an
insurer
who
is
a
member
of
a
federal
home
loan
bank.
Sec.
2.
Section
507C.5,
Code
2014,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
3.
a.
Notwithstanding
any
other
provision
to
the
contrary,
after
the
seventh
day
following
the
filing
of
a
delinquency
proceeding
a
federal
home
loan
bank
shall
not
be
stayed
or
prohibited
from
exercising
its
rights
regarding
collateral
pledged
by
an
insurer-member.
b.
If
a
federal
home
loan
bank
exercises
its
rights
regarding
collateral
pledged
by
an
insurer-member
who
is
subject
to
a
delinquency
proceeding,
the
federal
home
loan
bank
shall
repurchase
any
outstanding
capital
stock
that
is
in
excess
of
that
amount
of
federal
home
loan
bank
stock
that
the
insurer-member
is
required
to
hold
as
a
minimum
investment,
to
the
extent
the
federal
home
loan
bank
in
good
faith
determines
the
repurchase
to
be
permissible
under
applicable
laws,
regulations,
regulatory
obligations,
and
the
federal
home
loan
bank’s
capital
plan,
and
consistent
with
the
federal
home
loan
bank’s
current
capital
stock
practices
applicable
to
its
entire
membership.
Senate
File
2133,
p.
2
c.
Following
the
appointment
of
a
receiver
for
an
insurer-member,
the
federal
home
loan
bank
shall,
within
ten
business
days
after
a
request
from
the
receiver,
provide
a
process
and
establish
a
timeline
for
all
of
the
following:
(1)
The
release
of
collateral
that
exceeds
the
amount
required
to
support
secured
obligations
remaining
after
any
repayment
of
loans
as
determined
in
accordance
with
the
applicable
agreements
between
the
federal
home
loan
bank
and
the
insurer-member.
(2)
The
release
of
any
of
the
insurer-member’s
collateral
remaining
in
the
federal
home
loan
bank’s
possession
following
repayment
of
all
outstanding
secured
obligations
of
the
insurer-member
in
full.
(3)
The
payment
of
fees
owed
by
the
insurer-member
and
the
operation
of
deposits
and
other
accounts
of
the
insurer-member
with
the
federal
home
loan
bank.
(4)
The
possible
redemption
or
repurchase
of
federal
home
loan
bank
stock
or
excess
stock
of
any
class
that
an
insurer-member
is
required
to
own.
d.
Upon
request
from
a
receiver,
the
federal
home
loan
bank
shall
provide
any
available
options
for
an
insurer-member
subject
to
a
delinquency
proceeding
to
renew
or
restructure
a
loan
to
defer
associated
prepayment
fees,
subject
to
market
conditions,
the
terms
of
any
loans
outstanding
to
the
insurer-member,
the
applicable
policies
of
the
federal
home
loan
bank,
and
the
federal
home
loan
bank’s
compliance
with
federal
laws
and
regulations.
Sec.
3.
Section
507C.28A,
Code
2014,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
10.
Notwithstanding
any
other
provision
of
this
chapter
to
the
contrary,
the
receiver
for
an
insurer-member
shall
not
void
any
transfer
of,
or
any
obligation
to
transfer,
money
or
any
other
property
arising
under
or
in
connection
with
any
federal
home
loan
bank
security
agreement,
or
any
pledge,
security,
collateral,
or
guarantee
agreement,
or
any
other
similar
arrangement
or
credit
enhancement
relating
to
a
federal
home
loan
bank
security
agreement
made
in
the
ordinary
course
of
business
and
in
compliance
with
the
applicable
federal
home
loan
bank
agreement.
However,
a
transfer
may
be
avoided
under
this
subsection
if
the
transfer
was
made
with
intent
to
hinder,
delay,
or
defraud
the
insurer-member,
the
receiver
for
the
insurer-member,
or
existing
or
future
creditors.
This
Senate
File
2133,
p.
3
subsection
shall
not
affect
a
receiver’s
rights
regarding
advances
to
an
insurer-member
in
delinquency
proceedings
pursuant
to
12
C.F.R.
§1266.4.
______________________________
PAM
JOCHUM
President
of
the
Senate
______________________________
KRAIG
PAULSEN
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
2133,
Eighty-fifth
General
Assembly.
______________________________
MICHAEL
E.
MARSHALL
Secretary
of
the
Senate
Approved
_______________,
2014
______________________________
TERRY
E.
BRANSTAD
Governor