Federal Home Loan Banks cannot be prohibited from enforcing rights against pledged collateral.

This bill amends the Insurance Code to ensure that Federal Home Loan Banks are not stayed, enjoined, or prohibited from exercising or enforcing any right or cause of action against collateral pledged by an insurer-member under any security agreement. This includes any pledge, security, collateral, or guarantee agreement or other credit enhancement relating to a security agreement to which the Federal Home Loan Bank is a party. The bill clarifies that these provisions apply to all pending and future insolvencies.

Federal Home Loan Banks cannot be prohibited from enforcing rights against pledged collateral.

This bill amends the Insurance Code to ensure that Federal Home Loan Banks are not stayed, enjoined, or prohibited from exercising or enforcing any right or cause of action against collateral pledged by an insurer-member under any security agreement. This includes any pledge, security, collateral, or guarantee agreement or other credit enhancement relating to a security agreement to which the Federal Home Loan Bank is a party. The bill clarifies that these provisions apply to all pending and future insolvencies.