(A) Notwithstanding any other provision of this chapter to the contrary, the receiver for an insurer-member shall not void any transfer of, or any obligation to transfer, money or any other property arising under or in connection with any federal home loan bank security agreement, or any pledge, security, collateral, or guarantee agreement, or any other similar arrangement or credit enhancement relating 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. The receiver also may not void a redemption or repurchase of any stock or equity securities made by the federal home loan bank within four months of the commencement of the delinquency proceedings or which received prior approval of the receiver. However, a transfer is voidable if the transfer is made with the actual intent to hinder, delay, or defraud the insurer-member, existing creditors, or future creditors.
(B) If a federal home loan bank exercises its rights regarding collateral pledged by an insurer-member who is subject to a delinquency proceeding, the federal home loan bank shall repurchase any outstanding capital stock that is in excess of that amount of federal home loan bank stock that the insurer-member is required to hold as a minimum investment, to the extent the federal home loan bank in good faith determines the repurchase to be permissible under applicable laws, regulations, regulatory obligations, and the federal home loan bank's capital plan, and consistent with the federal home loan bank's current capital stock practices applicable to its entire membership.
(C) Following the appointment of a receiver for an insurer-member, the federal home loan bank shall, within ten business days after a request from the receiver is made, provide a process and establish timelines for the:
(1) release of collateral that exceeds the lendable collateral value, as determined pursuant to the advance agreement with the federal home loan bank, required to support secured obligations remaining after any repayment of advances;
(2) release of any of the insurer-member's collateral remaining in the federal home loan bank's possession following full repayment of all outstanding secured obligations of the insurer-member in full;
(3) payment of fees owed by the insurer-member and the operation of deposits and other accounts of the insurer-member with the federal home loan bank; and
(4) possible redemption or repurchase of federal home loan bank stock or excess stock of any class that an insurer-member is required to own.
(D) Upon request from the receiver for an insurer-member, the federal home loan bank shall provide any available options that an insurer-member may exercise to renew or restructure an advance to defer associated prepayment fees, subject to:
(1) market conditions;
(2) the terms of the advances outstanding to the insurer-member;
(3) the applicable policies of the federal home loan bank; and
(4) the compliance of the federal home loan bank with the Federal Home Loan Bank Act, 12 U.S.C. Section 1421, et seq., and corresponding regulations.
(E) Nothing in this section affects the rights of a receiver regarding advances to an insurer-member in delinquency proceedings pursuant to 12 C.F.R. Section 1266.4.
(F) The provisions of this section apply notwithstanding another provision of this chapter.
HISTORY: 2016 Act No. 190 (S.693), Section 1, eff May 26, 2016.
Structure South Carolina Code of Laws
Chapter 27 - Insurers' Rehabilitation And Liquidation Act
Section 38-27-10. Short title.
Section 38-27-20. Construction.
Section 38-27-40. Persons covered.
Section 38-27-50. Definitions.
Section 38-27-60. Jurisdiction and venue.
Section 38-27-70. Injunctions and orders.
Section 38-27-80. Cooperation of officers, owners, and employees.
Section 38-27-110. Disabilities of delinquent insurer pending repayment to guaranty association.
Section 38-27-220. Court's seizure order.
Section 38-27-230. Confidentiality of hearings.
Section 38-27-310. Grounds for rehabilitation.
Section 38-27-320. Rehabilitation orders.
Section 38-27-330. Powers and duties of rehabilitator.
Section 38-27-340. Actions by and against rehabilitator.
Section 38-27-350. Termination of rehabilitation.
Section 38-27-360. Grounds for liquidation.
Section 38-27-370. Liquidation orders.
Section 38-27-380. Continuance of coverage.
Section 38-27-390. Dissolution of insurer.
Section 38-27-400. Powers of liquidator.
Section 38-27-410. Notice to creditors and others.
Section 38-27-420. Duties of agents.
Section 38-27-430. Actions by and against liquidator.
Section 38-27-440. Collection and list of assets.
Section 38-27-450. Fraudulent transfers prior to petition.
Section 38-27-460. Transfers after petition.
Section 38-27-470. Voidable preferences and liens.
Section 38-27-480. Claims of holders of voidable rights.
Section 38-27-500. Assessments.
Section 38-27-510. Reinsurer's liability.
Section 38-27-520. Recovery of premiums owed.
Section 38-27-530. Domiciliary liquidator's proposal to distribute assets.
Section 38-27-540. Filing of claims.
Section 38-27-550. Proof of claim.
Section 38-27-560. Special claims.
Section 38-27-570. Special provisions for third party and insureds' claims.
Section 38-27-580. Disputed claims.
Section 38-27-590. Claims of surety.
Section 38-27-600. Secured creditor's claims.
Section 38-27-610. Priority of distribution.
Section 38-27-620. Liquidator's recommendations to court.
Section 38-27-630. Distribution of assets.
Section 38-27-640. Unclaimed and withheld funds.
Section 38-27-650. Termination of proceedings.
Section 38-27-660. Reopening liquidation.
Section 38-27-670. Disposition of records during and after termination of liquidation.
Section 38-27-680. External audit of receiver's books.
Section 38-27-910. Conservation of property of alien or foreign insurers.
Section 38-27-920. Liquidation of property of alien or foreign insurers.
Section 38-27-930. Domiciliary liquidators in other states.
Section 38-27-940. Ancillary formal proceedings.
Section 38-27-950. Ancillary summary proceedings.
Section 38-27-960. Claims of nonresidents against insurers domiciled in South Carolina.
Section 38-27-970. Claims of residents against insurers domiciled in reciprocal states.
Section 38-27-980. Attachment, garnishment, and levy of execution.
Section 38-27-990. Interstate priorities.
Section 38-27-1000. Subordination of claims for noncooperation.