Bill > AB1781

This bill, concerning Federal Home Loan Banks (FHLBs) and their relationship with insurance companies, aims to clarify and strengthen the rights of FHLBs when dealing with insurer-members, particularly in situations where an insurer becomes insolvent. Specifically, it prohibits a Federal Home Loan Bank from being prevented from enforcing its rights against collateral pledged by an insurer-member under any FHLB security agreement. Furthermore, it prevents a receiver, rehabilitator, liquidator, or conservator—officials appointed to manage an insolvent insurer's affairs—from voiding any transfer of money or property related to an FHLB security agreement unless it was done with the explicit intent to defraud creditors. The bill also defines "Federal Home Loan Bank" as an institution established under the Federal Home Loan Bank Act and "insurer-member" as an insurer that is a member of such a bank, providing important context for these provisions within the existing insurance code.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1781