Any association may make or purchase loans without the security of a lien upon real property as follows:
A. simple interest, discount or gross charge loans for property alteration, repair, improvement or for the equipping of any residential real property, if:
(1) with respect to the same property alteration, repair or improvement, the net proceeds of any such loan investment made pursuant to this subsection do not exceed five thousand dollars ($5,000);
(2) with respect to any such loan investment for the equipping of any residential real property, the net proceeds of the loan investment plus the aggregate of the unpaid net proceeds of all other of the association's outstanding equipping loan investments relating to the same property, which are made pursuant to this subsection, do not exceed five thousand dollars ($5,000);
(3) the property is located in the association's regular lending area;
(4) the loan is evidenced by one or more notes, bonds or other written evidences of debt;
(5) the loan is repayable in equal weekly, biweekly, monthly, bimonthly or quarterly installments with the first installment due no later than one hundred twenty days from the date the loan is made and the final installment due no later than ten years and thirty-two days from that date. However, the loan contract may provide for a first or final installment, or both, in an amount other than that of the regular installment but, in such instances, such installment shall not be less than one-half of nor more than one and one-half times the amount of the regular installment;
(6) investment in a loan for the equipping of residential real property will not cause the outstanding aggregate of all investments in loans for the equipping of such property to exceed five percent of an association's assets; and
(7) the resulting aggregate amount of all such loans made under this section does not exceed an amount equal to twenty percent of the association's assets;
B. loans made for the payment of expenses of college or university education, but no association shall make any investment in loans under this subsection if the principal amount of its investment in such loans, exclusive of any investment which is or which at the time of its making was otherwise authorized, would thereupon exceed five percent of its assets. Such loans may be secured, partly secured or unsecured, and the association may require a comaker, insurance, guaranty under a governmental student loan guarantee plan or other protection against contingencies. The borrower shall certify to the association that the proceeds of the loan are to be used by a full-time student solely for the payment of expenses of college or university education. As used in this subsection:
(1) "loan" means any loan, obligation and advance of credit; and
(2) "college or university education" means education at an institution which provides an educational program for which it awards a bachelor's degree, or provides not less than a two-year program which is acceptable for full credit towards a bachelor's degree; and
C. loans made for manufactured home financing, subject to any limitation as to maximum loan amount or term which the supervisor may prescribe for all associations. As used in this section, "manufactured home" means a movable accommodation with not less than four hundred square feet floor space and used or designed for use as living quarters. Any loan pursuant to this subsection is subject to all provisions of the Motor Vehicle Sales Finance Act.
History: 1953 Comp., § 48-15-88, enacted by Laws 1967, ch. 61, § 44; 1971, ch. 242, § 2; 1973, ch. 224, § 1; 1983, ch. 295, § 6.
Cross references. — For the legal disability of minors being removed when borrowing money for educational purposes, see 58-6-3 NMSA 1978.
For the Motor Vehicle Sales Finance Act, see 58-19-1 NMSA 1978.
For meaning of "supervisor", see 58-10-2J NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 10 Am. Jur. 2d Banks §§ 279 to 284.
9 C.J.S. Banks and Banking § 606; 12 C.J.S. Building and Loan Associations §§ 65, 66.
Structure New Mexico Statutes
Chapter 58 - Financial Institutions and Regulations
Article 10 - Savings and Loan Associations
Section 58-10-1 - Short title.
Section 58-10-2 - Definitions.
Section 58-10-3 - Application for charter.
Section 58-10-4 - Permanent capital stock.
Section 58-10-5 - Stock requirements for proposed permanent capital stock associations.
Section 58-10-7 - Savings account requirements for proposed permanent capital stock associations.
Section 58-10-10 - Capital debentures or notes.
Section 58-10-11 - Hearings on charter application.
Section 58-10-12 - Approval of application for charter.
Section 58-10-13 - Refusal of charter application; appeal.
Section 58-10-14 - Forfeiture of charter for failure to commence business.
Section 58-10-15 - Amendment of charter and bylaws.
Section 58-10-16 - Corporate name; exclusive use.
Section 58-10-17 - Branch offices.
Section 58-10-18 - Change of office.
Section 58-10-19 - Board of directors.
Section 58-10-20 - Organizational meeting.
Section 58-10-21 - Qualification of directors.
Section 58-10-23 - Indemnity bonds of directors, officers and employees.
Section 58-10-24 - Meetings; voting.
Section 58-10-25 - Access to records.
Section 58-10-27 - Misdescription of assets.
Section 58-10-28 - Charging off or setting up reserves against bad assets.
Section 58-10-29 - Membership records.
Section 58-10-30 - Financial statement.
Section 58-10-31 - Annual reports; other reports.
Section 58-10-32 - Power to borrow.
Section 58-10-33 - General corporate powers.
Section 58-10-34 - Fiscal agent.
Section 58-10-35 - Powers under federal law.
Section 58-10-36 - Original real estate loans.
Section 58-10-37 - Dealing in real estate loans.
Section 58-10-38 - Participation with others in real estate loans.
Section 58-10-39 - Requirements in lending transactions.
Section 58-10-40 - Advances to protect security.
Section 58-10-41 - Charges for real estate loans.
Section 58-10-42 - Insured and guaranteed loans.
Section 58-10-43 - Loans on security of savings accounts.
Section 58-10-44 - Property improvement, educational and manufactured home financing loans.
Section 58-10-45 - Investment in securities.
Section 58-10-46 - Acquisition of real property.
Section 58-10-47 - Investment in office buildings.
Section 58-10-48 - Valuation of real property of an association.
Section 58-10-49 - Appraisals of real estate owned.
Section 58-10-50 - Powers and privileges of association.
Section 58-10-51 - Limitation on savings accounts.
Section 58-10-52 - Uninsured accounts; notice.
Section 58-10-53 - Insurance of accounts; failure to obtain or maintain.
Section 58-10-54 - Who may open a savings account.
Section 58-10-55 - Savings contracts.
Section 58-10-56 - Evidence of account ownership.
Section 58-10-57 - Transfer of savings accounts.
Section 58-10-58 - Lost or destroyed evidence of ownership.
Section 58-10-59 - Savings accounts of minors.
Section 58-10-60 - Power of attorney on savings accounts.
Section 58-10-61 - Pledge of savings account in joint tenancy.
Section 58-10-62 - Accounts of fiduciaries.
Section 58-10-63 - Withdrawals from savings accounts.
Section 58-10-64 - Redemption of savings accounts.
Section 58-10-65 - Lien on savings accounts.
Section 58-10-66 - Paying dividends on savings accounts.
Section 58-10-67 - Computation of net income.
Section 58-10-68 - Transfers to loss reserves.
Section 58-10-69 - Dividends on permanent capital stock.
Section 58-10-70 - Use of surplus accounts and expense fund contributions.
Section 58-10-71 - Savings and loan supervisor.
Section 58-10-72 - General powers of supervisor.
Section 58-10-73 - Regulations.
Section 58-10-74 - Confidential information.
Section 58-10-75 - Supervisor; disposition of fees.
Section 58-10-76 - Audits and examinations; fees.
Section 58-10-77 - Other examinations.
Section 58-10-78 - Federal examination.
Section 58-10-79 - Additional examinations.
Section 58-10-80 - Order to discontinue violations.
Section 58-10-81 - Removal of directors, officers and employees.
Section 58-10-82 - Order to refrain from voting shares.
Section 58-10-83 - Emergency power of supervisor.
Section 58-10-84 - When order is final; appeal.
Section 58-10-85 - Receivership.
Section 58-10-86 - Communications from supervisor.
Section 58-10-87 - Reorganization; merger; consolidation.
Section 58-10-88 - Voluntary liquidation.
Section 58-10-89 - Exemption from securities laws.
Section 58-10-90 - All businesses to conform.
Section 58-10-91 - Outstanding items considered as savings accounts.
Section 58-10-92 - Judicial review.
Section 58-10-93 - Slander; felony.
Section 58-10-94 - Violation of act; civil penalty.
Section 58-10-95 - Violations; criminal penalties.
Section 58-10-96 - Suppressing evidence; felony.
Section 58-10-97 - Disclosure of confidential information; felony; civil liability.
Section 58-10-98 - Conversion into federal association.
Section 58-10-99 - Conversion into state chartered association.
Section 58-10-101 - Foreign associations.
Section 58-10-102 - Federal associations; applicability.
Section 58-10-103 - Payment from savings account of decedent.
Section 58-10-104 - Authority to engage in leasing safe deposit facilities; subsidiary company.
Section 58-10-105 - Access by fiduciaries.
Section 58-10-106 - Effect of lessee's death or incapacity.
Section 58-10-107 - Lease to minor.
Section 58-10-108 - Search procedure on death.
Section 58-10-109 - Adverse claims to contents of safe deposit box.
Section 58-10-110 - Special remedies for nonpayment of rent.
Section 58-10-111 - Limitation of liability on construction loans.