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Senate passes bill to align state law with Federal Home Loan Bank collateral rules
Summary
Senate Bill 102 passed on final reading to clarify how collateral is treated for loans to insurance company members of the Federal Home Loan Bank System and to create parity with federal law governing depository institutions.
The Oregon Senate passed Senate Bill 102 on third reading March 10, 2025. Sponsor Sen. McLean said the bill harmonizes state and federal law on the treatment of collateral for loans made through the Federal Home Loan Bank (FHLB) System, allowing Oregon insurance-company members to borrow on terms more comparable to banks and credit unions.
On the floor, McLean described the FHLB System as a cooperative of regional banks created by Congress in 1932 to provide financing for homeownership. He explained federal law provides secured creditor certainty in receivership for depository institutions; by contrast, state law historically provided less certainty for insurance-company collateral. The bill updates Oregon law to create parity and was developed with input from the Oregon Department of Justice and the Oregon Department of Consumer and Business Services Insurance Division, the sponsor said.
No floor debate followed the sponsor’s remarks. The clerk recorded the final roll call as a constitutional majority; Senate Bill 102 was declared passed.
