,,ii  #aae? ,,congress  #b;d ,session   
,s4 #bcfa  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,janu>y #cj1 #bjah,ms4 
,duckwor? 7= h]self1 ,mr4 ,johnson1 &   
,mr4 ,scott7 introduc$ ! foll[+ bill2   
:i* 0 read twice & ref]r$ to !          
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs  ,a ,,bill  ,to am5d ! ,f$]al  
,home ,loan ,bank ,act to all[ a captive
 insurance company t 0 a memb] ( a      
,f$]al ,home ,loan ,bank be=e ,janu>y   
#ai1 #bjaf1 to cont9ue or re/ore !      
memb]%ip ( ! captive insurance company 9
 ! ,f$]al ,home ,loan ,bank1 & = o!r    
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,h\s+ ,opportunity         
,mortgage ,expansion ,act4  #b4         
,memb]%ip eligibility ( c]ta9 captive   
insurance companies  7a7 ,9 g5]al ,!    
,f$]al ,home ,loan ,bank ,act 7#ab      
,u4,s4,c4 #adbb et seq47 is am5d$-- 7#a7
 9 section #d 7#ab ,u4,s4,c4 #adbd71 by 
add+ at ! end ! foll[+3  7d7 ,memb]%ip  
eligibility ( c]ta9 captive insurance   
companies  7#a7 ,def9itions ,9 ?is      

subsection-- 7,a7 ! t]ms affiliate1     
long-t]m1 & resid5tial mortgage loan h !
 mean+s giv5 ^? t]ms 9 section #abfc4a (
 title #ab1 ,code ( ,f$]al ,regulations1
 z 9 effect on ! date ( enactm5t ( ?is  
subsection2 &  7,b7 ! t]m cov]$ captive 
insurance company means a captive       
insurance company-- 7i7 ! prim>y        
insurance bus9ess ( :i* is1 or 0 on     
,janu>y #ai1 #bjaf1 ! insurance ( an    
affiliate2  7ii7 t 0 admitt$ to memb]%ip
 ( a ,f$]al ,home ,loan ,bank be=e      
,janu>y #ai1 #bjaf2 &  7iii7 t1 due     
solely to ! *ange 9 ! treatm5t ( captive
 insurance companies 9 ! f9al rule ( !  
,ag5cy entitl$ ,memb]s ( ,f$]al ,home   
,loan ,banks 7#ha ,f$4 ,reg4 #cbdf      
7,janu>y #bj1 #bjaf77--  7,i7 0 requir$ 
to t]m9ate memb]%ip 9 ! ,f$]al ,home    
,loan ,bank2 or  7,,ii7 w h memb]%ip 9 !
 ,f$]al ,home ,loan ,bank t]m9at$4  7#b7
 ,cont9uation or re/oration ( memb]%ip  
,a cov]$ captive insurance company may  
cont9ue memb]%ip or h memb]%ip re/or$ 9 
! same ,f$]al ,home ,loan ,bank describ$

 9 p>agraph 7#a77;,b77ii7 if--  7,a7 !  
,f$]al ,home ,loan ,bank det]m9es1      
includ+ bas$ on in=mation submitt$ by ! 
cov]$ captive insurance company1 t--    
7i7 ! affiliate insur$ by ! cov]$       
captive insurance company makes1 owns1  
or acquires long-t]m resid5tial mortgage
 loans2 &  7ii7 ! cov]$ captive         
insurance company w comply ) ! memb]%ip 
eligibility requirem5ts describ$ 9      
subsections 7a71 7b71 & 7c7 ( section   
#abfc4f ( title #ab1 ,code ( ,f$]al     
,regulations1 ^u re/or+ memb]%ip2 &     
7,b7 ! cov]$ captive insurance company  
cont9ues to be own$1 or ^u re/oration ( 
memb]%ip is own$ & cont9ues to be own$1 
includ+ direct own]%ip by a controll+   
entity or indirect own]%ip ?r\gh "o or m
 hold+ companies1 by ! same entity t    
own$ ! cov]$ captive insurance company  
on ! date ( enactm5t ( ?is subsection4  
7#c7 ,b5efits  7,a7 ,9 g5]al ,a cov]$   
captive insurance company = :i* memb]%ip
 9 a ,f$]al ,home ,loan ,bank is cont9u$
 or re/or$ "u p>agraph 7#b7 %all h !    

same b5efits ( memb]%ip 9 ! ,f$]al ,home
 ,loan ,bank z ! cov]$ captive insurance
 company _h be=e ,janu>y #ai1 #bjaf4    
7,b7 ,application ( regulation ,section 
#abfc4f7;e7 ( title #ab1 ,code ( ,f$]al 
,regulations1 or any successor !reto1   
%all n apply to a cov]$ captive         
insurance company = :i* memb]%ip 9 a    
,f$]al ,home ,loan ,bank is cont9u$ or  
re/or$ "u p>agraph 7#b74  7,c7 ,captives
 treat$ z insurance companies ,except z 
o!rwise specifically provid$ = 9 ?is    
,act1 = purposes ( ?is ,act & any       
regulations promulgat$ "u ?is ,act1 a   
cov]$ captive insurance company %all be 
treat$ z an insurance company4  7#d7    
,limitation on advances ,) respect to a 
cov]$ captive insurance company = :i*   
memb]%ip 9 a ,f$]al ,home ,loan ,bank is
 cont9u$ or re/or$ "u p>agraph 7#b7 & t 
is n an affiliate ( a depository        
f9ancial in/itution1 ! ,f$]al ,home     
,loan ,bank may n make any advances to !
 cov]$ captive insurance company 9 an   
am\nt t1 9 ! aggregate1 is great] ?an   

#ej p]c5t ( ! total assets ( ! cov]$    
captive insurance company unless !      
,f$]al ,home ,loan ,bank has receiv$ f !
 affiliate ( ! cov]$ captive insurance  
company or ! controll+ entity describ$ 9
 p>agraph 7#b77;,b7 a gu>antee ( paym5t 
= any out/&+ advances1 :i* %all be 9    
addition to any collat]al o!rwise       
requir$ to secure ! advances4  2 &  7#b7
 9 section #f7;g7 7#ab ,u4,s4,c4        
#adbf7;g77-- 7,a7 9 p>agraph 7#a71 by   
/rik+ p>agraph 7#b7 & ins]t+ p>agraphs  
7#b7 & 7#c72 &  7,b7 by add+ at ! end ! 
foll[+3  7#c7 ,exception = c]ta9 captive
 insurance companies ,a cov]$ captive   
insurance company 7z def9$ 9 section    
#d7;d77#a77 = :i* memb]%ip 9 a ,f$]al   
,home ,loan ,bank is re/or$ "u section  
#d7;d77#b7--  7,a7 %all n be subject to 
! #e-ye> p]iod describ$ 9 p>agraph 7#a72
 &  7,b7 may acquire %>es ( ! ,f$]al    
,home ,loan ,bank beg9n+ aft] ! memb]%ip
 is re/or$4  4