New York State Assembly

 
•  Summary 
 
•  Actions 
 
•  Committee Votes 
 
•  Floor Votes 
 
•  Memo 
 
•  Text 
 
•  LFIN 
 
•  Chamber Video/Transcript 

A03573 Summary:

A03573 Actions:

A03573 Committee Votes:

Committee:INSURANCE   Chair:Cahill      
DATE:05/25/2021AYE/NAY:23/0  Action: Favorable refer to committee Ways and Means        
Cahill
Aye
Blankenbush
Aye
Cook
Aye
Hawley
Aye
Pretlow
Aye
Byrne
Aye
Rivera
Aye
Schmitt
Aye
Cymbrowitz
Aye
Palmesano
Aye
Lavine
Aye
DiPietro
Aye
Steck
Aye
Gandolfo
Excused
Dilan
Aye
Hunter
Aye
Niou
Aye
Rosenthal
Aye
Stern
Aye
McDonald
Aye
Jacobson
Aye
Williams
Aye
Meeks
Aye
Forrest
Excused
Anderson
Aye

Committee:WAYS AND MEANS   Chair:Weinstein      
DATE:06/07/2021AYE/NAY:35/0  Action: Favorable refer to committee Rules        
Weinstein
Aye
Ra
Aye
Glick
Aye
Fitzpatrick
Aye
Nolan
Aye
Hawley
Aye
Pretlow
Aye
Montesano
Aye
Perry
Aye
Blankenbush
Aye
Colton
Aye
Norris
Aye
Cook
Aye
Brabenec
Aye
Cahill
Aye
Palmesano
Aye
Aubry
Aye
Byrne
Aye
Cusick
Aye
Ashby
Aye
Benedetto
Aye
Weprin
Aye
Rodriguez
Aye
Ramos
Aye
Braunstein
Aye
McDonald
Aye
Rozic
Aye
Dinowitz
Aye
Joyner
Aye
Magnarelli
Aye
Zebrowski
Aye
Bronson
Aye
Dilan
Aye
Seawright
Aye
Hyndman
Aye

Committee:RULES   Chair:Gottfried      
DATE:06/08/2021AYE/NAY:30/0  Action: Favorable         
Heastie
Excused
Barclay
Aye
Gottfried
Aye
Hawley
Aye
Nolan
Aye
Giglio
Aye
Weinstein
Aye
Blankenbush
Aye
Pretlow
Aye
Norris
Aye
Cook
Aye
Montesano
Aye
Glick
Aye
Ra
Aye
Aubry
Aye
Brabenec
Aye
Englebright
Aye
Dinowitz
Aye
Colton
Aye
Magnarelli
Aye
Perry
Aye
Paulin
Aye
Peoples-Stokes
Aye
Benedetto
Aye
Lavine
Aye
Lupardo
Aye
Zebrowski
Aye
Thiele
Aye
Braunstein
Aye
Dickens
Aye
Davila
Aye

A03573 Floor Votes:

A03573 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3573
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 27, 2021
                                       ___________
 
        Introduced  by  M.  of A. CYMBROWITZ, STERN, LAVINE, HUNTER -- 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:
 
     1    Section 1. Section 7425 of the insurance law is amended  by  adding  a
     2  new subsection (e) to read as follows:
     3    (e)  (1)  Notwithstanding  subsection (a) of this section or any other
     4  provision of this article to the contrary, (i) a receiver shall not void
     5  a transfer of money or other property arising  under  or  in  connection
     6  with a federal home loan bank security agreement that is made before the
     7  commencement  of  a formal proceeding under this article in the ordinary
     8  course of business and in compliance with the security agreement  unless
     9  such  transfer  was  made with actual intent to hinder, delay or defraud
    10  the insurer-member, a  receiver  appointed  for  the  insurer-member  or
    11  existing  or  future  creditors;  and  (ii)  a receiver shall not void a
    12  redemption or repurchase of any stock or  equity  securities  which  was
    13  made  by  the  federal  home  loan  bank  within four months of a formal
    14  commencement of the delinquency  proceedings  or  which  received  prior
    15  approval of the receiver.
    16    (2)  Following the appointment of a receiver for an insurer-member and
    17  upon request of the receiver, the federal home loan bank  shall,  within
    18  ten days of such request, provide a process and establish timing for all
    19  of the following:
    20    (i)  the  release  of  collateral  that  exceeds the lending value, as
    21  determined in accordance with the federal home loan bank security agree-
    22  ment, required to support secured obligations remaining after any repay-
    23  ment of advances;
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06970-01-1
        A. 3573                             2
 
     1    (ii) the release of any collateral remaining in the federal home  loan
     2  bank's possession following repayment in full of all outstanding secured
     3  obligations;
     4    (iii)  the  payment  of  fees  and the operation of deposits and other
     5  accounts with the federal home loan bank; and
     6    (iv) the possible redemption or repurchase of federal home  loan  bank
     7  stock or excess stock of any class that an insurer-member is required to
     8  own.
     9    (3) Upon the request of the receiver for an insurer-member, the feder-
    10  al  home loan bank shall provide any available options that are accepta-
    11  ble to the federal home loan bank for such insurer-member  to  renew  or
    12  restructure  an  advance  to  defer  associated  prepayment fees, to the
    13  extent that market conditions, the terms of the advance  outstanding  to
    14  the  insurer-member,  the  applicable  policies of the federal home loan
    15  bank and compliance with the federal home loan bank act and  correspond-
    16  ing regulations permit.
    17    (4)  Nothing  in  this  subsection  shall affect the federal home loan
    18  bank's rights pursuant to 12 CFR 1266.4, which relates to limitations on
    19  access to advances.
    20    § 2. Section 7419 of the insurance law is  amended  by  adding  a  new
    21  subsection (c) to read as follows:
    22    (c)  Notwithstanding  subsections  (a) and (b) of this section and any
    23  other provision of this article, a federal home loan bank shall  not  be
    24  stayed,  enjoined,  or prohibited from exercising any right or enforcing
    25  any obligation under a federal home loan bank security agreement  relat-
    26  ing to collateral pledged by an insurer-member to such federal home loan
    27  bank.
    28    §  3.  Section  7409  of  the insurance law is amended by adding a new
    29  subsection (d) to read as follows:
    30    (d) Notwithstanding subsections (a), (b) and (c) of this  section,  or
    31  any  other  provision  of  this article, the receiver shall not disavow,
    32  reject, or repudiate a federal home loan bank security agreement or  any
    33  pledge  agreement,  security  agreement, collateral agreement, guarantee
    34  agreement, or other similar arrangement or credit  enhancement  relating
    35  to a security agreement to which a federal home loan bank is a party.
    36    § 4. This act shall take effect immediately.