[Congressional Record Volume 164, Number 40 (Wednesday, March 7, 2018)]
[Senate]
[Page S1497]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2141. Ms. DUCKWORTH (for herself, Mr. Scott, Ms. Baldwin, and Mr.
Johnson) submitted an amendment intended to be proposed by her to the
bill S. 2155, to promote economic growth, provide tailored regulatory
relief, and enhance consumer protections, and for other purposes; which
was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. MEMBERSHIP ELIGIBILITY OF CERTAIN CAPTIVE INSURANCE
COMPANIES.
(a) In General.--The Federal Home Loan Bank Act (12 U.S.C.
1422 et seq.) is amended--
(1) in section 4 (12 U.S.C. 1424), by adding at the end the
following:
``(d) Membership Eligibility of Certain Captive Insurance
Companies.--
``(1) Definitions.--In this subsection--
``(A) the terms `affiliate', `long-term', and `residential
mortgage loan' have the meanings given those terms in section
1263.1 of title 12, Code of Federal Regulations, as in effect
on the date of enactment of this subsection; and
``(B) the term `covered captive insurance company' means a
captive insurance company--
``(i) the primary insurance business of which is, or was on
January 19, 2016, the insurance of an affiliate;
``(ii) that was admitted to membership of a Federal Home
Loan Bank before January 19, 2016; and
``(iii) that, due solely to the change in the treatment of
captive insurance companies in the final rule of the Agency
entitled `Members of Federal Home Loan Banks' (81 Fed. Reg.
3246 (January 20, 2016))--
``(I) was required to terminate membership in the Federal
Home Loan Bank; or
``(II) will have membership in the Federal Home Loan Bank
terminated.
``(2) Continuation or restoration of membership.--A covered
captive insurance company may continue membership or have
membership restored in the same Federal Home Loan Bank
described in paragraph (1)(B)(ii) if--
``(A) the Federal Home Loan Bank determines, including
based on information submitted by the covered captive
insurance company, that--
``(i) the affiliate insured by the covered captive
insurance company makes, owns, or acquires long-term
residential mortgage loans; and
``(ii) the covered captive insurance company will comply
with the membership eligibility requirements described in
subsections (a), (b), and (c) of section 1263.6 of title 12,
Code of Federal Regulations, upon restoring membership; and
``(B) the covered captive insurance company continues to be
owned, or upon restoration of membership is owned and
continues to be owned, including direct ownership by a
controlling entity or indirect ownership through one or more
holding companies, by the same entity that owned the covered
captive insurance company on the date of enactment of this
subsection.
``(3) Benefits.--
``(A) In general.--A covered captive insurance company for
which membership in a Federal Home Loan Bank is continued or
restored under paragraph (2) shall have the same benefits of
membership in the Federal Home Loan Bank as the covered
captive insurance company had before January 19, 2016.
``(B) Application of regulation.--Section 1263.6(e) of
title 12, Code of Federal Regulations, or any successor
thereto, shall not apply to a covered captive insurance
company for which membership in a Federal Home Loan Bank is
continued or restored under paragraph (2).
``(C) Captives treated as insurance companies.--Except as
otherwise specifically provided for in this Act, for purposes
of this Act and any regulations promulgated under this Act, a
covered captive insurance company shall be treated as an
insurance company.
``(4) Limitation on advances.--With respect to a covered
captive insurance company for which membership in a Federal
Home Loan Bank is continued or restored under paragraph (2)
and that is not an affiliate of a depository financial
institution, the Federal Home Loan Bank may not make any
advances to the covered captive insurance company in an
amount that, in the aggregate, is greater than 50 percent of
the total assets of the covered captive insurance company
unless the Federal Home Loan Bank has received from the
affiliate of the covered captive insurance company or the
controlling entity described in paragraph (2)(B) a guarantee
of payment for any outstanding advances, which shall be in
addition to any collateral otherwise required to secure the
advances.''; and
(2) in section 6(g) (12 U.S.C. 1426(g))--
(A) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (3)''; and
(B) by adding at the end the following:
``(3) Exception for certain captive insurance companies.--A
covered captive insurance company (as defined in section
4(d)(1)) for which membership in a Federal Home Loan Bank is
restored under section 4(d)(2)--
``(A) shall not be subject to the 5-year period described
in paragraph (1); and
``(B) may acquire shares of the Federal Home Loan Bank
beginning after the membership is restored.''.
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