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Senate hears technical fix to align Oregon law with Federal Home Loan Bank collateral rules (SB 102)
Summary
Senate Committee on Finance and Revenue staff summarized SB 102 on Feb. 3 as a technical bill to align Oregon law with federal rules so Federal Home Loan Banks can enforce claims on collateral pledged by insurance company members in delinquency proceedings.
Senate Committee on Finance and Revenue staff summarized Senate Bill 102 on Monday, Feb. 3, describing it as a set of provisions to harmonize state law with federal law so a Federal Home Loan Bank (FHLB) can exercise rights to collateral pledged by insurance company members in delinquency or receivership proceedings.
Rick Metzger, testifying for the Federal Home Loan Bank of Des Moines and partners, said the bill "harmonizes state and federal law" and would allow the FHLB to treat collateral pledged by insurance company members more like that pledged by banks and credit unions. Metzger said the change would increase certainty and borrowing capacity for insurance‑company members, and that many states have already adopted similar language. "Without this legislation, the Federal Home Loan Bank will continue to provide less borrowing capacity for insurance companies against the same collateral," Metzger said.
Metzger described the FHLB system's role in affordable housing finance and provided an example of recent grant activity: the Federal Home Loan Bank of Des Moines awarded a 3:1 grant match to Oregon State Credit Union to support Cornerstone Community Housing in Eugene. He said the banks are required to contribute 10% of net income to affordable housing grants and that Des Moines voluntarily contributed an additional 5% in 2024. Kevin Patrick, corporate counsel for the Federal Home Loan Bank of Des Moines (joining remotely), introduced himself and said he was available for technical questions.
Metzger said the bill incorporates recommended changes from the Oregon Department of Justice and the insurance division of the Department of Consumer and Business Services and noted the National Conference of Insurance Legislators has recommended similar amendments. Committee members recorded no opposition on the hearing record.
Ending: The committee closed the public hearing on SB 102 after technical testimony; no formal vote was recorded at the hearing.
