A. Every association without permanent capital stock shall accumulate from its earnings a reserve fund for protection against losses. The reserve fund shall be accumulated by setting aside to the fund at each dividend-paying period a sum equal to two percent of its net earnings before dividends until the reserve fund equals not less than five percent of its total savings liability. The reserve fund shall be maintained at this level, and upon any subsequent increase in total savings liability, the association shall make additional accumulations at the rate and times set forth in this section for initial accumulations. For the purposes of this subsection, any accumulation of loss reserves and undivided profits shall be considered to be part of the reserve fund required.
B. Every permanent capital stock association shall maintain a net worth totaling at least five percent of its total savings liability or at the discretion of the supervisor build up its federal insurance reserve, or loss reserve, and net worth accounts pursuant to regulations issued by the supervisor. If the net worth is less than the amounts specified by regulation of the supervisor, no association shall issue savings account or investment certificates except for savings account or investment certificates theretofore issued or in connection with loans, and no association shall receive additional funds on savings accounts or investment certificates, but the association may credit to savings accounts or investment certificates interest earned thereon. No association shall pay any dividends to permanent capital stockholders or distribute any profits to stockholders if its net worth is less than, or by such payment or distribution would be reduced below, the amount specified by regulation of the supervisor.
History: 1953 Comp., § 48-15-111, enacted by Laws 1967, ch. 61, § 67; 1975, ch. 250, § 1.
Cross references. — For definition of loss reserves, see 58-10-2D NMSA 1978.
Cross references. — For meaning of "supervisor", see 58-10-2J NMSA 1978.
Outstanding capital debentures not used to satisfy net worth requirements. — Outstanding capital debentures or notes may not be used to satisfy the net worth requirements of Section 58-10-47 NMSA 1978, or any other section of the Savings and Loan Act except for Section 58-10-68 NMSA 1978, which is for the purpose of computing an association's reserve requirements. In that event, they are to be treated as capital. 1975 Op. Att'y Gen. No. 75-53.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 10 Am. Jur. 2d Banks §§ 186, 193, 216.
9 C.J.S. Banks and Banking § 23; 12 C.J.S. Building and Loan Associations § 50.
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.