Bill > A05600

This bill amends the New York insurance law to provide specific protections and guidelines for Federal Home Loan Banks (FHLB) during insurance company delinquency proceedings. The bill establishes that a receiver cannot void transfers of money or property related to an FHLB security agreement if those transfers were made in the ordinary course of business and without intent to defraud. The bill also prevents receivers from voiding stock redemptions by FHLBs within four months of delinquency proceedings. Additionally, the legislation requires FHLBs to cooperate with receivers by providing processes for releasing collateral, handling accounts, and redeeming stock, and to assist the insurance department by offering options to renew or restructure advances. The bill further prohibits staying or enjoining an FHLB from exercising its rights under a security agreement and prevents receivers from disavowing or rejecting FHLB security agreements. These provisions aim to provide more clarity and protection for FHLBs in insurance company insolvency situations, ensuring they can maintain their financial interests while supporting orderly delinquency proceedings.

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https://www.nysenate.gov/legislation/bills/2025/A5600