Assembly Bill A8040

2019-2020 Legislative Session

Relates to certain voidable transfers affecting a federal home loan bank

download bill text pdf

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Archive: Last Bill Status - In Assembly Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2019-A8040 (ACTIVE) - Details

See Senate Version of this Bill:
S7329
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §§7425, 7419 & 7409, Ins L
Versions Introduced in Other Legislative Sessions:
2021-2022: A3573, S4282
2023-2024: A4925, S6827

2019-A8040 (ACTIVE) - Summary

Relates to certain voidable transfers affecting a federal home loan bank including injunctions and the conduct of delinquency proceedings against insurers domiciled in this state.

2019-A8040 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8040
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 31, 2019
                                ___________
 
 Introduced  by  M.  of  A.  CYMBROWITZ  -- read once and referred to the
   Committee on Insurance
 
 AN ACT to amend the insurance  law,  in  relation  to  certain  voidable
   transfers affecting a federal home loan bank
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 7425 of the insurance law is amended  by  adding  a
 new subsection (e) to read as follows:
   (E)  (1)  NOTWITHSTANDING  SUBSECTION (A) OF THIS SECTION OR ANY OTHER
 PROVISION OF THIS ARTICLE TO THE CONTRARY, (I) A RECEIVER SHALL NOT VOID
 A TRANSFER OF MONEY OR OTHER PROPERTY ARISING  UNDER  OR  IN  CONNECTION
 WITH A FEDERAL HOME LOAN BANK SECURITY AGREEMENT THAT IS MADE BEFORE THE
 COMMENCEMENT  OF  A FORMAL PROCEEDING UNDER THIS ARTICLE IN THE ORDINARY
 COURSE OF BUSINESS AND IN COMPLIANCE WITH THE SECURITY AGREEMENT  UNLESS
 SUCH  TRANSFER  WAS  MADE WITH ACTUAL INTENT TO HINDER, DELAY OR DEFRAUD
 THE INSURER-MEMBER, A  RECEIVER  APPOINTED  FOR  THE  INSURER-MEMBER  OR
 EXISTING  OR  FUTURE  CREDITORS;  AND  (II)  A RECEIVER SHALL NOT VOID A
 REDEMPTION OR REPURCHASE OF ANY STOCK OR  EQUITY  SECURITIES  WHICH  WAS
 MADE  BY  THE  FEDERAL  HOME  LOAN  BANK  WITHIN FOUR MONTHS OF A FORMAL
 COMMENCEMENT OF THE DELINQUENCY  PROCEEDINGS  OR  WHICH  RECEIVED  PRIOR
 APPROVAL OF THE RECEIVER.
   (2)  FOLLOWING THE APPOINTMENT OF A RECEIVER FOR AN INSURER-MEMBER AND
 UPON REQUEST OF THE RECEIVER, THE FEDERAL HOME LOAN BANK  SHALL,  WITHIN
 TEN DAYS OF SUCH REQUEST, PROVIDE A PROCESS AND ESTABLISH TIMING FOR ALL
 OF THE FOLLOWING:
   (I)  THE  RELEASE  OF  COLLATERAL  THAT  EXCEEDS THE LENDING VALUE, AS
 DETERMINED IN ACCORDANCE WITH THE FEDERAL HOME LOAN BANK SECURITY AGREE-
 MENT, REQUIRED TO SUPPORT SECURED OBLIGATIONS REMAINING AFTER ANY REPAY-
 MENT OF ADVANCES;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11820-02-9

              

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