Conn. Gen. Stat. § 38a-963: Collateral rights and requirements of Federal Home Loan Banks during delinquency proceedings.

With respect to an insurer that is subject to any delinquency proceedings, whether formal, informal, administrative or judicial, and is a member of a Federal Home Loan Bank, as defined in 12 USC 1422, as amended from time to time:

(1) If such bank exercises such bank's rights regarding collateral pledged by such insurer, such bank shall repurchase, not later than seven business days after such delinquency proceeding, and to the extent such bank determines in good faith that such repurchase is permissible under applicable laws and regulations and such bank's capital plan and is consistent with such bank's current capital stock practices applicable to such bank's entire membership, any outstanding capital stock that is in excess of the amount of stock of such bank that such insurer is required to hold as a minimum investment.

(2) After the appointment of a receiver for such insurer, such bank shall provide to such receiver, not later than ten business days after a request from such receiver, a process and establish a timeline for all of the following:

(A) The release of such insurer's collateral that exceeds the amount required to support remaining secured obligations of such insurer after any repayment of loans as determined in accordance with applicable agreements between such bank and such insurer;

(B) The release of such insurer's collateral that remains after repayment in full of all outstanding secured obligations of such insurer;

(C) The payment of any fees owed by such insurer and the operation, maintenance, closure or disposition of deposits and other accounts such insurer may have with such bank; and

(D) The possible redemption or repurchase of the stock of such bank or excess stock of any class that such insurer is required to hold as a member of such bank.

(3) Upon request from a receiver of such insurer, such bank shall provide to such receiver any available options for such insurer to renew or restructure a loan. Any such options shall be subject to market conditions, the terms of such insurer's outstanding loans, the applicable policies of such bank and such bank's compliance with federal laws and regulations.