KRS 304.33-052: Federal home loan banks -- Rights regarding collateral --Procedures.

(1) (a) A federal home loan bank shall not be stayed or otherwise prohibited by a

court from exercising its rights regarding collateral pledged by an insurer -

member for more than ten (10) days following the date a temporary restraining

order, preliminary injunction, or permanent injunction is issued by the court

pursuant to KRS 304.33-050.

(b) A federal home loan bank exercising its rights regarding collateral pledged by

an insurer -member shall, within seven (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 t he extent it determines in good

faith that the repurchase is:

1. Permissible under federal laws and regulations and the federal home

loan bank's capital plan; and

2. Consistent with the capital stock practices currently applicable to the

federal home loan bank's entire membership.

(2) (a) Not later than ten (10) days after the date of appointment of a receiver in a

proceeding under this subtitle involving an insurer -member, the federal home

loan bank shall provide to the receiver a process and timeline for all of the

following:

1. The release of any collateral held by the federal home loan bank that

exceeds the amount that is required to support the secured obligation of

the insurer-member and that is remaining after any repayment of loans,

as determined und er the applicable agreements between the federal

home loan bank and insurer-member;

2. The release of any collateral of the insurer -member remaining in the

federal home loan bank's possession following the repayment in full of

all outstanding secured obligations of the insurer-member;

3. 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 and the

federal home loan bank; and

4. Any 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.

(b) Upon request of the receiver a ppointed in a proceeding under this subtitle

involving an insurer-member, the federal home loan bank shall provide to the

receiver any 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:

1. Market conditions;

2. The terms of any loans outstanding to the insurer-member;

3. The applicable policies of the federal home loan bank; and

4. The federal laws and regulations applicable to federal home loan banks.