LRBa1991/1
ARG:kjf
2017 - 2018 LEGISLATURE
SENATE AMENDMENT 1,
TO SENATE BILL 686
February 5, 2018 - Offered by Senator Marklein.
SB686-SA1,1,11 At the locations indicated, amend the bill as follows:
SB686-SA1,1,2 21. Page 9, line 23: delete “No injunction" and substitute “Injunctions".
SB686-SA1,1,5 32. Page 9, line 23: before “Notwithstanding" insert “(a) In this subsection,
4“insurer-member” means a member of the federal home loan bank in question that
5is an insurer.
SB686-SA1,1,7 73. Page 9, line 24: delete “no" and substitute “a".
SB686-SA1,1,13 84. Page 10, line 3: after “agreement" insert “, for a period not to exceed 10 days
9after the appointment of a receiver for an insurer-member of the federal home loan
10bank. If the federal home loan bank fails to comply with the provisions of pars. (c)
11and (d), the court may, within 10 days following the appointment of the receiver,
12extend the stay until the federal home loan bank complies with the provisions of pars.
13(c) and (d)".
SB686-SA1,2,1
15. Page 10, line 3: after that line insert:
SB686-SA1,2,4 2“(c) Not later than 5 days after notification to the federal home loan bank of the
3appointment of a receiver for an insurer-member, the federal home loan bank shall
4deliver to the receiver a process and timeline for all of the following:
SB686-SA1,2,85 1. The release of collateral held by the federal home loan bank that exceeds the
6amount that is required to support the outstanding secured loan obligations and that
7is remaining after any repayment of loans, as determined under the applicable
8agreements between the federal home loan bank and the insurer-member.
SB686-SA1,2,109 2. The release of any collateral remaining in the federal home loan bank's
10possession following repayment of all outstanding secured obligations in full.
SB686-SA1,2,1111 3. The payment of fees owed by the insurer-member.
SB686-SA1,2,1312 4. The redemption or repurchase of federal home loan bank stock in excess of
13the minimum amount the insurer-member is required to own.
SB686-SA1,2,2114 (d) Upon the request of the receiver and not later than 5 days after notification
15to the federal home loan bank of the appointment of a receiver for an
16insurer-member, the federal home loan bank shall provide any available options for
17the insurer-member to renew or restructure an advance. In determining which
18options are available, the federal home loan bank may consider market conditions,
19the terms of the advance outstanding to the insurer-member, the applicable policies
20of the federal home loan bank, and compliance with the Federal Home Loan Bank
21Act and corresponding regulations.
SB686-SA1,3,222 (e) A federal home loan bank shall, within 7 days of receipt of a repurchase
23request made by the insurer-member, repurchase any outstanding capital stock in
24excess of the amount of stock the insurer-member is required to hold as a minimum

1investment. The federal home loan bank shall repurchase the excess outstanding
2capital stock if the repurchase is all of the following:
SB686-SA1,3,43 1. Permissible under federal laws and regulations and the federal home loan
4bank's capital plan.
SB686-SA1,3,65 2. Consistent with the capital stock practices then applicable to the federal
6home loan bank's entire membership.”.
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