Mississippi SB 2227: Federal Home Loan Banks; provide certain rights and procedures regarding collateral.

Bill Text

S. B. No. 2227 *SS26/R522* ~ OFFICIAL ~ G1/2
23/SS26/R522
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To: Insurance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2023

By: Senator(s) Michel

SENATE BILL NO. 2227

AN ACT TO AMEND SECTION 83-24-7, MISSISSIPPI CODE OF 1972, TO 1
DEFINE THE TERM "FEDERAL HOME LOAN BANK"; TO AMEND SECTIONS 2
83-24-11 AND 83-24-29, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A 3
FEDERAL HOME LOAN BANK SHALL NOT BE STAYED, ENJOINED, OR 4
PROHIBITED FROM EXERCISING OR ENFORCING ANY RIGHT OR CAUSE OF 5
ACTION REGARDING COLLATERAL PLEDGED UNDER A SECURITY AGREEMENT OR 6
UNDER ANY PLEDGE AGREEMENT, SECURITY AGREEMENT, COLLATERAL 7
AGREEMENT OR OTHER SIMILAR ARRANGEMENT OR CREDIT ENHANCEMENT 8
RELATING TO A SECURITY AGREEMENT TO WHICH THE FEDERAL HOME LOAN 9
BANK IS A PARTY; TO AMEND SECTION 83-24-41, MISSISSIPPI CODE OF 10
1972, TO PROVIDE THAT NO LIQUIDATOR SHALL HAVE THE POWER TO 11
DISAVOW, REJECT OR REPUDIATE ANY PLEDGE AGREEMENT, SECURITY 12
AGREEMENT, COLLATERAL AGREEMENT OR OTHER SIMILAR AGREEMENT OR 13
CREDIT ENHANCEMENT RELATING TO A SECURITY AGREEMENT TO WHICH A 14
FEDERAL HOME LOAN BANK IS A PARTY; TO AMEND SECTION 83-24-51, 15
MISSISSIPPI CODE OF 1972, TO PROVIDE THAT, EXCEPT FOR IN LIMITED 16
CIRCUMSTANCES, A RECEIVER SHALL NOT AVOID ANY TRANSFER OF, OR ANY 17
OBLIGATION TO TRANSFER, MONEY OR ANY OTHER PROPERTY ARISING UNDER 18
OR IN CONNECTION WITH A FEDERAL HOME LOAN BANK SECURITY AGREEMENT 19
OR ANY PLEDGE AGREEMENT, SECURITY AGREEMENT, COLLATERAL AGREEMENT, 20
GUARANTEE AGREEMENT, OR OTHER SIMILAR ARRANGEMENT OR CREDIT 21
ENHANCEMENT RELATING TO A SECURITY AGREEMENT TO WHICH A FEDERAL 22
HOME LOAN BANK IS A PARTY; TO AMEND SECTION 83-24-55, MISSISSIPPI 23
CODE OF 1972, TO PROVIDE THAT A LIQUIDATOR OR REHABILITATOR SHALL 24
NOT AVOID ANY PREFERENCE ARISING UNDER OR IN CONNECTION WITH A 25
FEDERAL HOME LOAN BANK SECURITY AGREEMENT OR ANY PLEDGE AGREEMENT, 26
SECURITY AGREEMENT, COLLATERAL AGREEMENT, GUARANTEE AGREEMENT, OR 27
OTHER SIMILAR ARRANGEMENT OR CREDIT ENHANCEMENT RELATING TO A 28
SECURITY AGREEMENT TO WHICH A FEDERAL HOME LOAN BANK IS A PARTY; 29
TO CREATE NEW SECTION 83-24-119, MISSISSIPPI CODE OF 1972, TO 30
PROVIDE CERTAIN REQUIREMENTS AND PROCEDURES OF FEDERAL HOME LOAN 31
BANKS IF THE BANK EXERCISES CERTAIN RIGHTS; AND FOR RELATED 32
PURPOSES. 33

S. B. No. 2227 *SS26/R522* ~ OFFICIAL ~
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 34
SECTION 1. Section 83-24-7, Mississippi Code of 1972, is 35
amended as follows: 36
83-24-7. For the purposes of this chapter: 37
(a) "Ancillary state" means any state other than a 38
domiciliary state. 39
(b) "Commissioner" means the Commissioner of Insurance. 40
(c) "Creditor" is a person having any claim, whether 41
matured or unmatured, liquidated or unliquidated, secured or 42
unsecured, absolute, fixed or contingent. 43
(d) "Delinquency proceeding" means any proceeding 44
instituted against an insurer for the purpose of liquidating, 45
rehabilitating, reorganizing or conserving such insurer, and any 46
summary proceeding under Section 83-24-19. "Formal delinquency 47
proceeding" means any liquidation or rehabilitation proceeding. 48
(e) "Doing business" includes any of the following 49
acts, whether effected by mail or otherwise: 50
(i) The issuance or delivery of contracts of 51
insurance to persons residing in this state; 52
(ii) The solicitation of applications for such 53
contracts, or other negotiations preliminary to the execution of 54
such contracts; 55
(iii) The collection of premiums, membership fees, 56
assessments or other consideration for such contracts; 57

S. B. No. 2227 *SS26/R522* ~ OFFICIAL ~
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(iv) The transaction of matters subsequent to 58
execution of such contracts and arising out of them; or 59
(v) Operating under a license or certificate of 60
authority, as an insurer, issued by the Department of Insurance. 61
(f) "Domiciliary state" means the state in which an 62
insurer is incorporated or organized; or, in the case of an alien 63
insurer, its state of entry. 64
(g) "Fair consideration" is given for property or 65
obligation: 66
(i) When in exchange for such property or 67
obligation, as a fair equivalent therefor, and in good faith, 68
property is conveyed or services are rendered or an obligation is 69
incurred or an antecedent debt is satisfied; or 70
(ii) When such property or obligation is received 71
in good faith to secure a present advance or antecedent debt in 72
amount not disproportionately small as compared to the value of 73
the property or obligation obtained. 74
(h) "Federal home loan bank" means an institution 75
chartered under the Federal Home Loan Bank Act (12 USC 1421 et 76
seq.), as amended, or its successor statute. 77
( * * *i) "Foreign country" means any other 78
jurisdiction not in any state. 79
( * * *j) "General assets" means all property, real, 80
personal, or otherwise, not specifically mortgaged, pledged, 81
deposited or othe