Bill > HB2129

This bill modifies Oregon law regarding Federal Home Loan Banks (FHLBs) and their interactions with insurer-members during delinquency proceedings. The bill establishes that courts cannot prevent an FHLB from exercising its rights to collateral pledged by an insurer-member in financial distress, and requires receivers to comply with new provisions protecting the FHLB's interests. Key provisions include mandating that FHLBs repurchase excess capital stock under specific conditions, requiring FHLBs to establish a process for releasing collateral and handling accounts within 10 business days of a receiver's request, and providing opportunities for loan renewal or restructuring. Importantly, the bill prohibits receivers from voiding transfers or obligations related to FHLB security agreements, except in cases of intentional fraud. The legislation defines specific terms like "collateral" and "insurer-member" and references federal regulations to provide clarity. The bill is declared an emergency measure, meaning it will take effect immediately upon passage and applies to delinquency proceedings beginning on or after its effective date, with the aim of protecting public financial interests and providing a clear framework for handling complex financial restructuring situations.

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https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2129