Bill > LD720

This bill amends Maine's insurance laws to provide additional protections for Federal Home Loan Banks (FHLBs) when they lend money to insurer members who become financially troubled. The bill defines a Federal Home Loan Bank as an institution established under federal law and an "insurer member" as an insurer that is a member of such a bank. The key provisions include preventing legal actions that would restrain an FHLB from exercising its rights for more than 10 days, requiring FHLBs to repurchase an insurer member's excess capital stock under certain conditions, and mandating that FHLBs provide the state superintendent with a process and timeline for handling collateral and accounts when an insurer member is in receivership. Additionally, the bill prevents receivers or liquidators from avoiding transfers or obligations related to FHLB agreements, except in cases of actual intent to defraud. The legislation aims to provide clarity and protection for Federal Home Loan Banks in their lending relationships with insurance companies, ensuring they can more easily manage their financial interests during an insurer's financial difficulties.

Health and Social Services

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=720&snum=132