Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-119 - Federal home loan bank secured claims on insurers subject to delinquency proceeding; voiding; exercise of certain rights regarding pledged collateral; procedure and timelines after appointment of receiver for insurer member

(1)
Notwithstanding any other provision of this title, any secured claim that a federal home loan bank has on an insurer who is subject to a delinquency proceeding under this chapter is governed exclusively by this section.
(2)
Notwithstanding any other provision of this title, a receiver shall not void a redemption or repurchase of any stock or equity securities made by a federal home loan bank within four (4) months of the commencement of the delinquency proceedings or that received prior approval of the receiver. However, a transfer is voidable if the transfer is made with the actual intent to hinder, delay, or defraud the insurer member, the receiver for the insurer member, existing creditors or future creditors.
(3)
If a federal home loan bank exercises its rights regarding collateral pledged by an insurer member who is subject to a delinquency proceeding, then the federal home loan bank shall repurchase any capital stock that is in excess of the amount of federal home loan bank stock that the insurer member is required to hold as a minimum investment, to the extent the federal home loan bank in good faith determines the repurchase to be permissible under applicable laws, regulations, regulatory obligations, and the federal home loan bank's capital plan, and consistent with the federal home loan bank's current capital stock practices applicable to its entire membership.
(4)
Following the appointment of a receiver for an insurer member, the federal home loan bank, within ten (10) business days after a request made by the receiver, shall provide a process and establish timelines for the:
(a)
Release of collateral that exceeds the lendable collateral value, as determined pursuant to the advance agreement with the federal home loan bank, required to support secured obligations remaining after any repayment of advances;
(b)
Release of any of the insurer member's collateral remaining in the federal home loan bank's possession following repayment in full of all outstanding secured obligations of the insurer member;
(c)
Payment of fees owed by the insurer member and the operation of deposits and other accounts of the insurer member with the federal home loan bank; and
(d)
Possible redemption or repurchase of federal home loan bank stock or excess stock of any class that an insurer member is required to own.
(5)
Upon request from the receiver for an insurer member, the federal home loan bank shall provide any available options that an insurer member may exercise to renew or restructure an advance to defer associated prepayment fees, subject to the following:
(a)
Market conditions;
(b)
The terms of the advances outstanding to the insurer member;
(c)
The applicable policies of the federal home loan bank; and
(d)
Compliance with the Federal Home Loan Bank Act (
12 USC Section 1421
et seq.) and corresponding regulations.
(6)
After the tenth day following the commencement of a delinquency proceeding in this state involving an insurer member of the federal home loan bank, the federal home loan bank must not be stayed or prohibited from exercising its rights regarding collateral pledged by that insurer member.
Added by Laws, 2023, ch. 329, SB 2227,§ 7, eff. 7/1/2023.