Rhode Island 2024 Regular Session

Rhode Island House Bill H7432

Introduced
2/2/24  
Refer
2/2/24  
Report Pass
3/21/24  
Engrossed
3/28/24  
Refer
4/3/24  
Report Pass
5/28/24  
Enrolled
6/11/24  

Caption

Provides that no person, for over ten days, shall be restricted from enforcing a right under any pledge, security, credit, guarantee agreement, arrangement or other agreement credit enhancement to which a federal home loan bank is a party.

Impact

The enactment of H7432 will have significant implications on how insurers manage their assets and obligations during rehabilitation or liquidation proceedings. It allows federal home loan banks, which are crucial for providing liquidity to financial institutions, to act more promptly and efficiently in exercising their rights regarding collateral pledged by insurers. This change could positively impact insurers by ensuring that their dealings with federal home loan banks are maintained without undue delay, potentially stabilizing their financial situation and protecting policyholders' interests.

Summary

House Bill H7432 addresses the processes and regulations surrounding insurers' rehabilitation and liquidation in Rhode Island. It proposes amendments to existing statutes in the 'Insurers’ Rehabilitation and Liquidation Act'. The main focus of the bill is to stipulate that no individual shall be restricted from enforcing rights under agreements involving federal home loan banks for more than ten days. This change is intended to streamline actions that can be taken in the event of an insurer's insolvency and aims to enhance the stability of the insurance market within the state.

Contention

Notably, while the bill appears to offer a comprehensive framework for handling insurer insolvencies more effectively, some stakeholders may raise concerns regarding the rights of individual policyholders and creditors during the rehabilitation process. Critics may argue that the bill could prioritize the interests of larger financial institutions (like federal home loan banks) over those of smaller creditors or policyholders. Ensuring a balance between facilitating smoother operations for financial institutions and protecting the rights of individuals could be a point of contention as H7432 progresses through legislative channels.

Companion Bills

No companion bills found.

Previously Filed As

RI H5509

Procedure Generally -- Litigation Lending Agreements

RI S1047

Procedure Generally -- Litigation Lending Agreements

RI S0888

Rhode Island Noncompetition Agreement Act

RI H5533

Powers And Operations

RI S0696

Powers And Operations

RI H5160

Licensed Activities -- Lenders And Loan Brokers -- Check Cashing

RI S0175

Licensed Activities -- Lenders And Loan Brokers -- Check Cashing

RI S1091

Authorizing The Town Of Cumberland To Issue Not To Exceed $52,000,000 General Obligation Bonds, Notes And Other Evidences Of Indebtedness To Finance The Construction, Renovation, Improvement, Alteration, Repair, Furnishing And Equipping Of A New Elementary School And Other Related School Facilities And The Demolition Of An Existing Elementary School On Land Presently Occupied By The B.f. Norton School In The Town Provided That The Authorization Shall Be Reduced By Any Grant Received From The School Building Authority Capital Fund

RI H6479

Authorizing The Town Of Cumberland To Issue Not To Exceed $52,000,000 General Obligation Bonds, Notes And Other Evidences Of Indebtedness To Finance The Construction, Renovation, Improvement, Alteration, Repair, Furnishing And Equipping Of A New Elementary School And Other Related School Facilities And The Demolition Of An Existing Elementary School On Land Presently Occupied By The B.f. Norton School In The Town Provided That The Authorization Shall Be Reduced By Any Grant Received From The School Building Authority Capital Fund

RI H6404

Authorizing The Town Of Barrington To Finance The Construction, Improvement, Renovation, Alteration, Furnishing And Equipping Of Public Schools And School Facilities In The Town And All Expenses Incident Thereto Including, But Not Limited To, Costs Of Design, Athletic Fields, Playgrounds, Landscaping, Parking And Costs Of Financing And To Issue Not More Than $250,000,000 Bonds And/or Notes Therefor, Subject To Approval Of State Housing Aid At A Reimbursement Rate Or State Share Ratio Of Not Less Than 35 Percent At The Time Of Issuance And Provided That The Authorization Shall Be Reduced By The Amount Of Certain Grants Received From State Bond Proceeds, From The Rhode Island Department Of Education Or From The Rhode Island School Building Authority

Similar Bills

MS SB2227

Federal Home Loan Banks; provide certain rights and procedures regarding collateral.

MS HB1172

Federal home loan banks; define term and provide process for handling delinquent insurer's secured claim.

NM HB44

Federal Home Loan Banks

KY HB171

AN ACT relating to delinquency proceedings involving insurer-members of federal home loan banks.

IL HB0030

UNIFORM VOIDABLE TRANSACTIONS

RI S2270

Provides that no person, for over ten days, shall be restricted from enforcing a right under any pledge, security, credit, guarantee agreement, arrangement or other agreement credit enhancement to which a federal home loan bank is a party.

NJ A1746

Revises effects of delinquency and insolvency proceedings against insurer-members of federal home loan banks.

NJ S2947

Revises effects of delinquency and insolvency proceedings against insurer-members of federal home loan banks.