AB-1781 • 2026

Federal Home Loan Banks.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Michelle Rodriguez
Last action: 2026-04-23
Official status: In Senate. Read first time. To Com. on RLS. for assignment.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide details on all potential impacts or limitations beyond those explicitly stated.

Federal Home Loan Banks Protection Act

The bill prevents certain legal actions against Federal Home Loan Banks (FHLBs) and protects transfers related to FHLB security agreements during insurer insolvency proceedings.

What This Bill Does

Prevents courts from stopping or limiting a Federal Home Loan Bank's ability to enforce rights or take action on collateral given by an insurance company member.
Stops officials like receivers, rehabilitators, liquidators, and conservators from canceling transfers of money or property related to FHLB security agreements unless there was intent to harm creditors.

Who It Names or Affects

Federal Home Loan Banks (FHLBs)
Insurance companies that are members of FHLBs
Officials like receivers, rehabilitators, liquidators, and conservators

Terms To Know

Collateral: Assets given by an insurance company to secure a loan or other financial obligation.
Receiver: A person appointed by the court to manage and protect the assets of an insolvent business.

Limits and Unknowns

The bill does not specify what happens if transfers are made with intent to harm creditors.
It is unclear how this legislation will affect non-insurance company members of FHLBs.

Bill History

2026-04-23 California Legislative Information
In Senate. Read first time. To Com. on RLS. for assignment.
2026-04-23 California Legislative Information
Read third time. Passed. Ordered to the Senate. (Ayes 74. Noes 0.)
2026-04-16 California Legislative Information
Read second time. Ordered to Consent Calendar.
2026-04-15 California Legislative Information
From committee: Do pass. To Consent Calendar. (Ayes 17. Noes 0.) (April 15).
2026-03-16 California Legislative Information
Referred to Com. on INS.
2026-02-10 California Legislative Information
From printer. May be heard in committee March 12.
2026-02-09 California Legislative Information
Read first time. To print.

Official Summary Text

AB 1781, as introduced, 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.

Current Bill Text

Read the full stored bill text

Download Bill PDF