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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)

Became Law

FINANCIAL PRACTICESFINANCIAL PRACTICES - INSURANCE SALES

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Faster stock buybacks and collateral release

Within 10 days after a receiver is named for an insurer member, a Federal Home Loan Bank must give the Maine Superintendent a process and timeline to release extra collateral, handle fees and accounts, and redeem or repurchase required or excess bank stock. If the Superintendent asks, the bank must share any available options to renew or restructure the insurer’s loans, based on market conditions, bank policy, and federal rules. When the bank uses rights in pledged collateral and the insurer asks to redeem, the bank must buy back any stock above the required minimum within 7 days, but only if federal law and the bank’s capital practices allow it.

Protects Federal Home Loan Bank rights

Courts and others cannot block a Federal Home Loan Bank from enforcing its secured rights for more than 10 days. In insurer rehabilitation or liquidation, transfers and preferences tied to the bank’s pledges, loans, or collateral cannot be undone, unless made with actual intent to hinder, delay, or defraud the insurer or its creditors. These rules keep the bank’s collateral and contract rights in place during delinquency cases.

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. ACTPUB Chapter 17

    5/1/2026

  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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