{"data":{"id":"us-ky/krs-304.33-052","jurisdiction":"us-ky","citation":"KRS 304.33-052","heading":"Federal home loan banks -- Rights regarding collateral --Procedures.","body":"(1) (a) A federal home loan bank shall not be stayed or otherwise prohibited by a\ncourt from exercising its rights regarding collateral pledged by an insurer -\nmember for more than ten (10) days following the date a temporary restraining\norder, preliminary injunction, or permanent injunction is issued by the court\npursuant to KRS 304.33-050.\n(b) A federal home loan bank exercising its rights regarding collateral pledged by\nan insurer -member shall, within seven (7) days of receiving a redemption\nrequest made by the insurer-member, repurchase any of the insurer -member's\noutstanding capital stock in excess of the amount the insurer -member must\nhold as a minimum investment. The federal home loan bank shall repurchase\nthe excess outstanding capital stock only to t he extent it determines in good\nfaith that the repurchase is:\n1. Permissible under federal laws and regulations and the federal home\nloan bank's capital plan; and\n2. Consistent with the capital stock practices currently applicable to the\nfederal home loan bank's entire membership.\n(2) (a) Not later than ten (10) days after the date of appointment of a receiver in a\nproceeding under this subtitle involving an insurer -member, the federal home\nloan bank shall provide to the receiver a process and timeline for all of the\nfollowing:\n1. The release of any collateral held by the federal home loan bank that\nexceeds the amount that is required to support the secured obligation of\nthe insurer-member and that is remaining after any repayment of loans,\nas determined und er the applicable agreements between the federal\nhome loan bank and insurer-member;\n2. The release of any collateral of the insurer -member remaining in the\nfederal home loan bank's possession following the repayment in full of\nall outstanding secured obligations of the insurer-member;\n3. The payment of fees owed by the insurer -member and the operation,\nmaintenance, closure, or disposition of deposits and other accounts of\nthe insurer -member, as mutually agreed upon by the receiver and the\nfederal home loan bank; and\n4. Any redemption or repurchase of federal home loan bank stock or excess\nstock of any class that the insurer -member is required to own under\nagreements between the federal home loan bank and the insurer -\nmember.\n(b) Upon request of the receiver a ppointed in a proceeding under this subtitle\ninvolving an insurer-member, the federal home loan bank shall provide to the\nreceiver any available options for the insurer-member to renew or restructure a\nloan. In determining which options are available, the federal home loan bank\nmay consider:\n1. Market conditions;\n2. The terms of any loans outstanding to the insurer-member;\n3. The applicable policies of the federal home loan bank; and\n4. The federal laws and regulations applicable to federal home loan banks.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52644","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:54Z","sha256":"d2c59aaa8b69b636a66f5497376d8ad149d693ccc8603574a0502c9d0bb52c5d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.33-050","next":"us-ky/krs-304.33-055"},"notice":"GroundRules: Original legal text. Not legal advice."}