Amendment AA1-AB822

LRBa1947/1

ARG:kjf

2017 - 2018 LEGISLATURE

ASSEMBLY AMENDMENT 1, TO ASSEMBLY BILL 822

February 6, 2018 - Offered by Representative Katsma.

AB822-AA1,1,1 At the locations indicated, amend the bill as follows:

AB822-AA1,1,2 1. Page 9, line 23: delete “No injunction" and substitute “Injunctions".

AB822-AA1,1,5 2. Page 9, line 23: before “Notwithstanding" insert “(a) In this subsection, “insurer-member” means a member of the federal home loan bank in question that is an insurer.

AB822-AA1,1,6 (b)".

AB822-AA1,1,7 3. Page 9, line 24: delete “no" and substitute “a".

AB822-AA1,1,13 4. Page 10, line 3: after “agreement" insert “, for a period not to exceed 10 days after the appointment of a receiver for an insurer-member of the federal home loan bank. If the federal home loan bank fails to comply with the provisions of pars. (c) and (d), the court may, within 10 days following the appointment of the receiver, extend the stay until the federal home loan bank complies with the provisions of pars. (c) and (d)".

AB822-AA1,2,1 5. Page 10, line 3: after that line insert:

AB822-AA1,2,4 “(c) Not later than 5 days after notification to the federal home loan bank of the appointment of a receiver for an insurer-member, the federal home loan bank shall deliver to the receiver a process and timeline for all of the following:

AB822-AA1,2,8 1. The release of collateral held by the federal home loan bank that exceeds the amount that is required to support the outstanding secured loan obligations and that is remaining after any repayment of loans, as determined under the applicable agreements between the federal home loan bank and the insurer-member.

AB822-AA1,2,10 2. The release of any collateral remaining in the federal home loan bank's possession following repayment of all outstanding secured obligations in full.

AB822-AA1,2,11 3. The payment of fees owed by the insurer-member.

AB822-AA1,2,13 4. The redemption or repurchase of federal home loan bank stock in excess of the minimum amount the insurer-member is required to own.

AB822-AA1,2,21 (d) Upon the request of the receiver and not later than 5 days after notification to the federal home loan bank of the appointment of a receiver for an insurer-member, the federal home loan bank shall provide any available options for the insurer-member to renew or restructure an advance. In determining which options are available, the federal home loan bank may consider market conditions, the terms of the advance outstanding to the insurer-member, the applicable policies of the federal home loan bank, and compliance with the Federal Home Loan Bank Act and corresponding regulations.

AB822-AA1,3,2 (e) A federal home loan bank shall, within 7 days of receipt of a repurchase request made by the insurer-member, repurchase any outstanding capital stock in excess of the amount of stock the insurer-member is required to hold as a minimum investment. The federal home loan bank shall repurchase the excess outstanding capital stock if the repurchase is all of the following:

AB822-AA1,3,4 1. Permissible under federal laws and regulations and the federal home loan bank's capital plan.

AB822-AA1,3,6 2. Consistent with the capital stock practices then applicable to the federal home loan bank's entire membership.”.

AB822-AA1,3,7 (End)