An Act To Protect Federal Home Loan Banks That Lend Money To Insurer Members That Become Delinquent

This Maine bill (LD 720) protects federal home loan banks that lend to insurer members when those insurers face financial distress. It requires these banks to repurchase excess capital stock held by an insurer within 7 days of a redemption request, and limits restrictions on enforcing loan agreements to no more than 10 days. The bill also mandates that federal home loan banks provide the Insurance Superintendent with a timeline for releasing collateral and resolving accounts within 10 days of a receiver being appointed for the insurer. These provisions directly affect federal home loan banks and their insurer members operating under Maine's insurance laws.