Bill > HB2781

This bill addresses legal procedures for Federal Home Loan Banks (FHLBs) when an insurance company member is undergoing a delinquency proceeding, providing several key protections and requirements. Specifically, the bill prevents courts from stopping an FHLB from exercising its rights to collateral pledged by an insurer-member, mandates that receivers must comply with the bill's provisions regarding claims and collateral, and requires FHLBs to repurchase excess capital stock under certain conditions. The bill establishes that a receiver cannot void transfers or obligations related to FHLB security agreements unless there is proof of an intent to hinder or defraud, and requires FHLBs to work cooperatively with receivers by establishing processes for releasing collateral, paying fees, and potentially restructuring loans. The legislation defines key terms like "collateral" and "insurer-member" and applies specifically to delinquency proceedings beginning on or after the bill's effective date. Notably, the bill includes an emergency clause, meaning it will take effect immediately upon passage, with the stated purpose of preserving public peace, health, and safety.

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2781