California AB 1781: Budget Act of 2008.

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 |Add To My Favorites |Track Bill | Version: 07/16/26 - Chaptered
 07/07/26 - Enrolled
 02/09/26 - Introduced

 AB-1781 Federal Home Loan Banks.(2025-2026)

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 Date Published: 07/16/2026 09:00 PM

AB1781:v97#DOCUMENTBill Start

 Assembly Bill

 No. 1781

 CHAPTER 90

 An act to amend Sections 1010, 1063.1, 1063.6, 1064.1, 1064.9, 1067.04, and 1067.16 of, and to add Section 1036.5 to, the Insurance Code, relating to insurance. 

 [
 Approved by

 Governor
 July 16, 2026.

 Filed with

 Secretary of State
 July 16, 2026.
 ]

LEGISLATIVE COUNSEL'S DIGEST

AB 1781, Michelle Rodriguez.
 Federal Home Loan Banks.

Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates the business of insurance in the state. Existing law generally regulates insolvency and delinquency proceedings for insurers.

This bill would prohibit a Federal Home Loan Bank (FHLB) from being stayed, enjoined, or prohibited from exercising or enforcing any right or cause of action against collateral pledged by an insurer-member or an FHLB insurer-member under any FHLB security agreement, as specified.

Existing law generally provides for the voiding of specified transfers during insolvency proceedings for insurers.

This bill would prohibit a receiver, rehabilitator, liquidator, or conservator from voiding any transfer of, or any obligation to transfer,
 money or other property arising under or in connection with any FHLB security agreement with an insurer-member unless the transfer was made with actual intent to hinder, delay, or defraud either existing or future creditors.

This bill would define terms for purposes of these provisions.

Digest Key

 Vote:
 MAJORITY 
 Appropriation:
 NO 
 Fiscal Committee:
 NO 
 Local Program:
 NO 

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 1010 of the Insurance Code is amended to read:

1010.

 (a) The provisions of this article shall apply to all persons, except the State Compensation Insurance Fund, subject to examination by the commissioner, or purporting to do insurance business in this state, or in the process of organization with intent to do such business therein, or from whom the commissioner’s certificate of authority is required for the transaction of business, or whose certificate of authority is revoked or suspended.

(b) Notwithstanding subdivision (a), if any of the conditions set forth in Section 1011 exists with respect to the State Compensation Insurance Fund, and the commissioner would otherwise file a verified application with the superior court or proceed under Section 1013 against the fund, the commissioner shall instead issue a report
 to the Governor, the President pro Tempore of the Senate, and the Speaker of the Assembly setting forth the conditions that exist and recommending a course to remedy those conditions. The Governor, in consultation with the Legislature, shall direct a course of action to be implemented by the fund’s board of directors, or if additional legislative action is necessary, recommend a course of action to the Legislature, or both.

(c) As used in this article:

(1) “Federal Home Loan Bank” means an institution that is established under the Federal Home Loan Bank Act (12 U.S.C. Sec. 1421 et seq.) or its successor statute.

(2) “Insurer-member” means an insurer that is a member of a Federal Home Loan Bank.

SEC. 2.

 Section 1036.5 is added to the Insurance Code, to read:

1036.5.

 (a) Notwithstanding any other provision of this article, a Federal Home Loan Bank shall not be stayed, enjoined, or prohibited from exercising or enforcing any right or cause of action against collateral pledged by an insurer-member under any Federal Home Loan Bank security agreement or any pledge, security, collateral, or guarantee agreement or other similar arrangement or credit enhancement relating to a security agreement to which the Federal Home Loan Bank is a party.

(b) Notwithstanding any other provision of this article, a receiver, rehabilitator, liquidator, or conservator shall not void any transfer of, or any obligation to transfer, money or other property arising under or in connection with any Federal Home Loan Bank security
 agreement with an insurer-member, or any pledge, security, collateral, or guarantee agreement or any other similar arrangement or cr