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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2129
Introduced and printed pursuant to House Rule 12.00. Presession filed (at the request of House Interim Committee
on Commerce and Consumer Protection for Federal Home Loan Bank of Des Moines)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act makes changes to laws about home loans and lender collateral. (Flesch Read-
ability Score: 67.7).
Provides that a court may not stay or prohibit a Federal Home Loan Bank from exercising
rights to collateral pledged by an insurer-member that is subject to a delinquency proceeding.Re-
quires a receiver to comply with provisions of this Act with respect to claims against the insurer-
member.
Requires a Federal Home Loan Bank that exercises a right to collateral to repurchase any
outstanding capital stock that exceeds the amount of Federal Home Loan Bank stock that the
insurer-member must hold as a minimum investment, subject to certain determinations.
Prohibits a receiver from voiding the transfer of, or obligation to transfer, moneys or property
under the terms of a Federal Home Loan Bank security agreement.
Declares an emergency, effective on passage.
A BILL FOR AN ACT
Relating to Federal Home Loan Banks; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 2 of this 2025 Act is added to and made a part of ORS 734.110 to
734.440.
SECTION 2.(1) As used in this section:
(a) “Collateral” means collateral that meets the requirements for the categories of
collateral that are set forth in 12 C.F.R. 1266.7(a), as in effect on the effective date of this
2025 Act, and in which a Federal Home Loan Bank holds a first priority perfected security
interest.
(b) “Federal Home Loan Bank” has the meaning given that term in 12 U.S.C. 1422, as in
effect on the effective date of this 2025 Act.
(c) “Insurer-member” means an insurer that is a member of a Federal Home Loan Bank.
(2) Notwithstanding requirements for a form of claim against an insurer that are set
forth in ORS 734.280 and notwithstanding the priority of preferred claims against an insurer
that are specified in ORS 734.290, of special deposit claims against an insurer that are spec-
ified in ORS 734.300 or of secured claims against an insurer that are specified in ORS 734.310,
in connection with a delinquency proceeding under ORS 734.110 to 734.440:
(a) A court may not stay or prohibit a Federal Home Loan Bank from exercising the
Federal Home Loan Bank’s rights with respect to collateral that an insurer-member has
pledged;and
(b) A receiver shall comply with the provisions of this section with respect to:
(A) The Federal Home Loan Bank’s rights in connection with an insurer-member; and
(B) Claims against an insurer-member.
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 3099 HB2129
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(3) A Federal Home Loan Bank that exercises a right with respect to collateral pledged
by an insurer-member that is subject to a delinquency proceeding shall repurchase any out-
standing capital stock that exceeds the amount of the Federal Home Loan Bank’s stock that
the insurer-member must hold as a minimum investment if the Federal Home Loan Bank
determines in good faith that the repurchase is:
(a) Permissible under applicable laws, regulations, regulatory obligations and the Federal
Home Loan Bank’s capital plan; and
(b) Consistent with the current capital stock practices the Federal Home Loan Bank ap-
plies to the entire membership of the Federal Home Loan Bank.
(4) After the appointment of a receiver for an insurer-member, a Federal Home Loan
Bank, within 10 business days after a request from the receiver, shall establish a process and
timelinefor:
(a) Releasing collateral that, under the terms of applicable agreements between the
Federal Home Loan Bank and the insurer-member, exceeds the amount required to support
obligations that remain after repaying loans;
(b) Releasing any of the insurer-member’s collateral that remains in the Federal Home
Loan Bank’s possession after payment in full of all of the insurer-member’s outstanding ob-
ligations;
(c) Paying fees the insurer-member owes and operating the insurer-member’s deposits
and accounts with the Federal Home Loan Bank; and
(d) Redeeming or repurchasing Federal Home Loan Bank stock or excess stock of any
class that an insurer-member must own.
(5) A Federal Home Loan Bank, at a receiver’s request, shall provide any available op-
portunities that may exist for an insurer-member that is subject to a delinquency proceeding
to renew or restructure a loan to defer prepayment fees, with due regard for:
(a) Market conditions;
(b) The terms of any loans to the insurer-member that are outstanding;
(c) Applicable policies of the Federal Home Loan Bank; and
(d) The Federal Home Loan Bank’s compliance with federal laws and regulations.
(6)(a) Notwithstanding ORS 734.350 and except as provided in paragraph (b) of this sub-
section, a receiver for an insurer-member, including the Director of the Department of
Consumer and Business Services, may not void any transfer of, or obligation to transfer,
moneys or property that occurs or arises under or in connection with:
(A) A Federal Home Loan Bank security agreement;
(B) A pledge, security, collateral or guarantee agreement; or
(C) Any other similar arrangement or credit enhancement that relates to a Federal Home
Loan Bank security agreement made in the ordinary course of business and in compliance
with the applicable Federal Home Loan Bank agreement.
(b) A receiver may void a transfer if the transfer was made with an intent to hinder,
delay or defraud the insurer-member, the receiver or existing or future creditors.
(c) This subsection does not affect a receiver’s rights under 12 C.F.R. 1266.4, as in effect
on the effective date of this 2025 Act, with respect to advances to an insurer-member that
is subject to a delinquency proceeding.
SECTION 3. Section 2 of this 2025 Act applies to delinquency proceedings that begin on
or after the effective date of this 2025 Act.
[2] HB2129
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SECTION 4. This 2025 Act being necessary for the immediate preservation of the public
peace, health and safety, an emergency is declared to exist, and this 2025 Act takes effect
on its passage.
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