S B&I SCR ORG3 3-3

SENATE CONCURRENT RESOLUTION NO. 78

(By Senators Tucker and McCabe, Palumbo)

[Originating in the Committee on Banking and Insurance]

Requesting the Joint Committee on Government and Finance study improving borrowing terms of banks lending to insurance companies in West Virginia.

    Whereas, Banks have been authorized to lend to insurance companies since 1932 but banks do not have the same protection as secured creditors to insurance companies under state laws as they do to depository institutions under the Federal Deposit Insurance Act; and

    Whereas, The recent financial crises have shown both the importance of access to liquidity for healthy financial companies and also the importance of secured creditors’ rights in capital market transactions; and

    Whereas, To benefit both the banks and the insurance companies operating in West Virginia, legislation may be required to improve the borrowing terms, including conforming state insolvency provisions governing insurance companies to similar federal provisions and changing the liquidity collateral requirements; therefore, be it

    Resolved by the Legislature of West Virginia:

    That the Joint Committee on Government and Finance is hereby requested to study improving borrowing terms of banks lending to insurance companies in West Virginia; and, be it

    Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2015, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it

    Further Resolved, That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.