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MaineLD 720132nd Maine Legislature (2025-2026)HouseWALLET

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

Sponsored By: Robert Foley (Republican)

Signed by Governor

FINANCIAL PRACTICESFINANCIAL PRACTICES - INSURANCE SALES

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Faster collateral and stock for insurers

When a receiver is named for an insurer that belongs to a Federal Home Loan Bank, the bank must send the Maine Superintendent a process and timeline within 10 days. It must cover releasing collateral that is not needed after partial or full repayment, paying fees, handling or closing accounts, and any stock redemptions. If an insurer member asks, the bank repurchases excess capital stock within 7 days. The repurchase happens only if federal law, the bank’s capital plan, and its membership‑wide practices allow it.

Limits on court blocks and clawbacks

Courts and others can only block an insurer member from using rights under a Federal Home Loan Bank loan or collateral deal for up to 10 days. Receivers and others cannot undo or avoid transfers or preferences tied to Federal Home Loan Bank pledges, loans, collateral, or guarantees, whether made before or after a case starts. An exception allows avoidance only if there was actual intent to hinder, delay, or defraud the insurer, its receiver, or any creditor.

Loan workout options for insurers

In any insurance proceeding that involves an insurer member, the Federal Home Loan Bank must provide the Maine Superintendent any available options to renew or restructure that insurer’s loans, when asked. The bank may consider market conditions, current loan terms, its policies, and federal rules when offering options.

Sponsors & Cosponsors

Sponsor

  • Robert Foley

    Republican • House

Cosponsors

  • David Haggan

    Republican • Senate

  • Donna Bailey

    Democratic • Senate

  • Joshua Morris

    Republican • House

  • Paul Flynn

    Republican • House

  • Rolf Olsen

    Republican • House

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. Signed by Governor, ACTPUB Chapter 17

    3/25/2025

  2. PASSED TO BE ENACTED, in concurrence.

    3/20/2025Senate

  3. PASSED TO BE ENACTED. Sent for concurrence. ORDERED SENT FORTHWITH.

    3/20/2025House

  4. Report READ and ACCEPTED, in concurrence.READ ONCEUnder suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED, in concurrence.Ordered sent down forthwith.

    3/20/2025Senate

  5. CONSENT CALENDAR - FIRST DAYUnder suspension of the rules CONSENT CALENDAR - SECOND DAY.The Bill was PASSED TO BE ENGROSSED.Sent for concurrence. ORDERED SENT FORTHWITH.

    3/18/2025House

  6. Received by the Clerk of the House on February 20, 2025.The Bill was REFERRED to the Committee on HEALTH COVERAGE, INSURANCE AND FINANCIAL SERVICES pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.

    2/20/2025House

Bill Text

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