Mass. General Laws c.175 § 180L-3/4

Federal home loan bank loans

This is an unofficial version of a Massachusetts General Law. For more information on this topic, please see law about insurance.

Updates

Added by St. 2024, c. 395, § 7, effective April 10, 2025

Section 180L 3/4

(a)

Notwithstanding any other provision of this section or sections 180A to 180L1/2, inclusive, no person shall be stayed, enjoined or prohibited for more than 10 days from exercising or enforcing a right or cause of action under a pledge, security, credit, collateral, loan, advance, reimbursement or guarantee agreement or arrangement or any similar agreement, arrangement or other credit enhancement to which a federal home loan bank is a party. 

(b)

Notwithstanding any other provision of this section or sections 180A to 180L1/2, inclusive, no receiver, rehabilitator, liquidator or other person shall avoid a transfer of, or obligation to transfer, money or any other property arising under or in connection with any pledge, security, credit, collateral, loan, advance, reimbursement or guarantee agreement or arrangement or any similar agreement, arrangement or other credit enhancement to which a federal home loan bank is a party that is made, incurred or assumed before or after the commencement of a delinquency proceeding under this chapter; provided, however, that a transfer may be avoided under chapter 109A if the transfer was made with actual intent to hinder, delay or defraud the insurer, a receiver appointed for the insurer or existing or future creditors.

(c)

A federal home loan bank exercising its rights relative to collateral pledged by an insurer-member shall, within 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 that it determines in good faith that the repurchase is:

• (i) permissible under federal laws and regulations and the federal home loan bank's capital plan; and
• (ii) consistent with the capital stock practices currently applicable to the federal home loan bank's entire membership.

(d)

(1)

Not more than 10 days after the date of appointment of a receiver, rehabilitator or liquidator in a proceeding under this section and sections 180A to 180L1/2, inclusive, involving an insurer-member of a federal home loan bank, the federal home loan bank shall provide to the receiver, rehabilitator or liquidator a process and timeline for:

• (i) the release of collateral held by the federal home loan bank that exceeds the amount required to support the secured obligations of the insurer-member and  remaining after repayment of loans, as determined under applicable agreements between the federal home loan bank and the insurer-member;
• (ii) the release of collateral of the insurer-member remaining in the federal home loan bank's possession following repayment in full of all outstanding secured obligations of the insurer-member;
• (iii) 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, rehabilitator or liquidator and the federal home loan bank; and
• (iv) the 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 insurer-member.

(2)

Upon the request of a receiver, rehabilitator or liquidator appointed in a proceeding under this section and sections 180A to 180L1/2, inclusive, involving a federal home loan bank insurer-member, the federal home loan bank shall provide to the receiver, rehabilitator or liquidator 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 market conditions, the terms of any loans outstanding to the insurer-member, the applicable policies of the federal home loan bank and federal laws and regulations applicable to federal home loan banks.

(e)

For the purposes of this section, "insurer-member" shall mean a member of a federal home loan bank that is an insurer.

Last updated:	January 10, 2025