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2022 Kentucky Revised Statutes
Chapter 304 - Insurance code
Subtitle 304.33 - Insurers Rehabilitation and Liquidation
304.33-052 Federal home loan banks -- Rights regarding collateral --Procedures.

Universal Citation: KY Rev Stat § 304.33-052 (2022)
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304.33-052 Federal home loan banks -- Rights regarding collateral --Procedures. (1) (a) (b) (2) (a) (b) A federal home loan bank shall not be stayed or otherwise prohibited by a court from exercising its rights regarding collateral pledged by an insurermember for more than ten (10) days following the date a temporary restraining order, preliminary injunction, or permanent injunction is issued by the court pursuant to KRS 304.33-050. A federal home loan bank exercising its rights regarding collateral pledged by an insurer-member shall, within seven (7) days of receiving a redemption request made by the insurer-member, repurchase any of the insurer-member's outstanding capital stock in excess of the amount the insurer-member must hold as a minimum investment. The federal home loan bank shall repurchase the excess outstanding capital stock only to the extent it determines in good faith that the repurchase is: 1. Permissible under federal laws and regulations and the federal home loan bank's capital plan; and 2. Consistent with the capital stock practices currently applicable to the federal home loan bank's entire membership. Not later than ten (10) days after the date of appointment of a receiver in a proceeding under this subtitle involving an insurer-member, the federal home loan bank shall provide to the receiver a process and timeline for all of the following: 1. The release of any collateral held by the federal home loan bank that exceeds the amount that is required to support the secured obligation of the insurer-member and that is remaining after any repayment of loans, as determined under the applicable agreements between the federal home loan bank and insurer-member; 2. The release of any collateral of the insurer-member remaining in the federal home loan bank's possession following the repayment in full of all outstanding secured obligations of the insurer-member; 3. The payment of fees owed by the insurer-member and the operation, maintenance, closure, or disposition of deposits and other accounts of the insurer-member, as mutually agreed upon by the receiver and the federal home loan bank; and 4. Any redemption or repurchase of federal home loan bank stock or excess stock of any class that the insurer-member is required to own under agreements between the federal home loan bank and the insurermember. Upon request of the receiver appointed in a proceeding under this subtitle involving an insurer-member, the federal home loan bank shall provide to the receiver any available options for the insurer-member to renew or restructure a loan. In determining which options are available, the federal home loan bank may consider: 1. Market conditions; 2. 3. 4. The terms of any loans outstanding to the insurer-member; The applicable policies of the federal home loan bank; and The federal laws and regulations applicable to federal home loan banks. Effective: July 14, 2022 History: Created 2022 Ky. Acts ch. 61, sec. 2, effective July 14, 2022.
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