N.M. Code R. § 12.16.42.8
Supplementary to Section 58-1-25 B NMSA 1978: a bank may expend funds for the development and improvement of such real estate to facilitate its sale; subject to approval by the director of the financial institutions division, and conditions and limitations the director may prescribe. Expenditures for such real estate development and improvement may be capitalized in other real estate owned. However, such advances may not be capitalized unless the bank maintains on file evidence that the advances will result in a more saleable property and are recoverable. The book value of the property may not exceed the estimated market value after development and improvement, or the market value established by the next appraisal required by paragraph D of Section 58-1-25 NMSA 1978.
N.M. Code R. § 12.16.42.8