A. Every association may invest in:
(1) obligations of, or guaranteed as to principal and interest by, the United States or this state;
(2) stock of a federal home loan bank of which it is eligible to be a member, and in any obligations or consolidated obligations of any federal home loan bank or banks;
(3) stock or obligations of the federal savings and loan insurance corporation;
(4) stock or obligations of a federal national mortgage association or any successor or successors thereto;
(5) demand, time or savings deposits with any bank or trust company, the deposits of which are insured by the federal deposit insurance corporation;
(6) stock or obligations of any corporation or agency of the United States or this state, or in deposits therewith to the extent that the corporation or agency assists in furthering or facilitating the association's purposes or power;
(7) insured savings accounts of any association;
(8) bonds, notes or other evidences of indebtedness which are a general obligation of any municipality, county, school district or other political subdivision of this state; and
(9) capital stock obligations or other securities of any service corporation organized under the laws of this state, if the entire capital stock of the corporation is available for purchase only by financial institutions of this state, federal savings and loan associations and national banks having their home offices in this state. No association may make any such investment in this state if its aggregate outstanding investment, determined as prescribed by the supervisor, would thereupon exceed one percent of its assets.
B. Securities owned by an association shall be carried on its books at no more than the actual cost thereof.
C. Nothing in the Savings and Loan Act denies to an association the right to invest its funds, operate a business, manage or deal in property or take any other action over whatever period of time may be reasonably necessary to avoid loss on a loan or investment made, or an obligation created, in good faith.
History: 1953 Comp., § 48-15-89, enacted by Laws 1967, ch. 61, § 45.
Cross references. — For definition of "service corporation", see 58-10-2I NMSA 1978.
For municipal housing bonds being legal investments, see 3-45-24 NMSA 1978.
For meaning of "supervisor", see 58-10-2J NMSA 1978.
State chartered banks and savings and loan associations are permitted to invest in mutual funds. 1987 Op. Att'y Gen. No. 87-04.
Mutual funds may not be pledged as collateral for deposits of public funds. 1987 Op. Att'y Gen. No. 87-04.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 10 Am. Jur. 2d Banks § 296.
9 C.J.S. Banks and Banking § 606.
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.