Section 31A-27a-108.1 - Injunctions and orders applicable to a federal home loan bank(1) As used in this section: (a) "Federal home loan bank" means the same as that term is defined in 12 U.S.C. Sec. 1422.(b) "Insurer-member" means an insurer that is a member as defined in 12 U.S.C. Sec. 1422.(2)(a) Notwithstanding any other provision of this chapter, after the seventh day following the filing of a delinquency proceeding, a state court may not stay or prohibit a federal home loan bank from exercising its rights regarding collateral pledged by an insurer-member.(b) A federal home loan bank may repurchase any outstanding capital stock that is in excess of the amount of federal home loan bank stock that the federal loan bank requires the insurer-member to hold as a minimum investment if:(i) the insurer-member is subject to a delinquency proceeding;(ii) the federal home loan bank exercises the federal home loan bank's rights regarding collateral pledged by the insurer-member;(iii) the federal home loan bank, in good faith, determines the repurchase is permissible under applicable laws, regulations, regulatory obligations, and the federal home loan bank's capital plan; and(iv) the repurchase is consistent with the federal home loan bank's current capital stock practices that apply to the federal home loan bank's entire membership.(c) Subject to Subsection (2)(d), after a court appoints a receiver for an insurer-member, a federal home loan bank shall provide the receiver a process, and establish a timeline, for the following:(i) the release of collateral that exceeds the amount required to support secured obligations remaining after any repayment of loans as determined in accordance with the applicable agreements between the federal home loan bank and the insurer-member;(ii) the release of any of the insurer-member's collateral remaining in the federal home loan bank's possession following full repayment of all outstanding secured obligations of the insurer-member;(iii) the 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(iv) the possible redemption or repurchase of federal home loan bank stock or excess stock of any class that an insurer-member is required to own.(d) An insurer-member shall provide the information described in Subsection (2)(c) within 10 business days after the day on which the receiver requests the information.(e) Upon request from a receiver, a federal home loan bank shall provide any available options for an insurer-member subject to a delinquency proceeding to renew or restructure a loan to defer associated prepayment fees, subject to:(ii) the terms of any loan outstanding to the insurer-member;(iii) the applicable policies of the federal home loan bank; and(iv) the federal home loan bank's compliance with federal laws and regulations.(3)(a) Notwithstanding any other provision of this chapter, the receiver for an insurer-member may not void any transfer of, or any obligation to transfer, money or any other property arising under or in connection with: (i) any federal home loan bank security agreement;(ii) any pledge, security, collateral, or guarantee agreement; or(iii) any other similar arrangement or credit enhancement relating to a federal home loan bank security agreement made in the ordinary course of business and in compliance with the applicable federal home loan bank agreement.(b) Notwithstanding Subsection (3)(a), an insurer-member may avoid a transfer if a party to the transfer made the transfer with intent to hinder, delay, or defraud the insurer-member, the receiver for the insurer-member, or an existing or future creditor.(c) This subsection shall not affect a receiver's rights regarding advances to an insurer-member in a delinquency proceeding pursuant to 12 C.F.R. Sec. 1266.4.Utah Code § 31A-27a-108.1
Added by Chapter 120, 2024 General Session ,§ 29, eff. 5/1/2024.