The bill amends the "Insurers’ Rehabilitation and Liquidation Act" by introducing changes to how injunctions and orders can be applied by a receiver to protect the assets of an insurer in rehabilitation or liquidation. It includes a new subsection (c) that limits the duration a person can be restrained from exercising rights under financial agreements with a federal home loan bank to ten days. The bill also provides instructions for federal home loan banks regarding collateral, stock repurchases, and loan restructuring or renewal requests. Additionally, it clarifies the conditions under which transfers made without fair consideration or with intent to defraud creditors can be deemed fraudulent and avoided by the receiver, with specific stipulations for real and other types of property.

The bill further specifies that transactions with reinsurers that release them from paying for losses without fair equivalent value may be considered fraudulent if they occur within one year before the petition for receivership. It exempts certain transactions with federal home loan banks from being avoided unless made with actual intent to defraud. A new section, 27-14.3-32, outlines conditions for voidable preferences and recovery methods for the liquidator, with exceptions for federal home loan bank transactions. The bill also addresses the recovery of indemnifying property or liens, the discharge of surety liability, the set-off of new credit against recoverable preferences, and the examination of payments to attorneys. It holds individuals personally liable for knowingly participating in giving a preference under certain conditions and protects the rights of federal home loan banks regarding collateral pledged by insurer-members. The act will take effect upon passage.