New Hampshire Senate Bill SB66

New Hampshire 2023 Regular Session

• Introduced: 1/12/23
• Refer: 1/12/23
• Report Pass: 2/1/23
• Engrossed: 3/20/23
• Refer: 3/20/23
• Report Pass: 5/12/23
• Enrolled: 6/30/23
• Chaptered: 8/1/23
• Passed: 8/1/23

Caption

Relative to financial transactions involving the liquidation or rehabilitation of an insurer in which the Federal Home Loan Bank is a party.

Impact

The proposed modifications to existing statutes will allow parties to enforce agreements without the threat of being obstructed by injunctions or stays during the rehabilitation or liquidation of an insurer. This change is anticipated to enhance the operational effectiveness of financial transactions related to insurance, benefitting the parties involved, especially those interacting with the FHLB. By providing explicit exceptions to current provisions that may limit actions taken in these contexts, the bill is expected to facilitate smoother financial dealings within the insurance sector.

Summary

Senate Bill 66 focuses on financial transactions related to the liquidation or rehabilitation of insurers, specifically those involving the Federal Home Loan Bank (FHLB). The bill aims to ensure that no person shall be restrained from enforcing any rights or causes of action arising under agreements to which the FHLB is a party. This legislation seeks to clarify and strengthen the legal frameworks surrounding the financial transactions of insurers, emphasizing the role of the FHLB in these processes.

Contention

Key points of contention may arise around the implications of enabling easier enforcement of rights related to FHLB agreements, particularly in the context of fraudulent transfers or preferences. The bill introduces exceptions that prevent receivers from avoiding certain transactions, raising concerns about potential misuse or challenges in fraud scenarios. Critics may argue that these provisions could weaken safeguards that protect the interests of creditors and other stakeholders in liquidation or rehabilitation situations.