N.M. Code R. § 12.17.4.8

Current through Register Vol. 35, No. 11, June 11, 2024

Section 12.17.4.8 - CREDIT UNION SERVICE ORGANIZATIONS

A. The purpose of a credit union service organization is to provide those goods and services and perform those functions that are associated with routine credit union operations. It may provide any or all of the following functions or services:

(1) credit card and debit card services, ATM services, accounting systems, data processing, management training and support, payment item processing, record retention and storage, locator services, research services, debt collection services, credit analysis and loan servicing and coin and currency services;

(2) family financial services including, but not limited to, financial planning and counseling, including retirement counseling, estate planning and income tax preparation, developing and administering IRA and Keogh plans and other personal benefit plans and provision of trust services including acting as trustee or in any other similar fiduciary capacity;

(3) personal property leasing and developing of leasing plans; and

(4) other services, as determined by the director, that are associated with the routine operation of credit unions.

B. A credit union may, either by itself or in agreement with other entities, form or invest in a credit union service organization.

C. A credit union investing in or lending to a credit union service organization must submit call reports or any other information upon request by the director. In addition, a credit union service organization shall be subject to examination by the financial institutions division.

D. A credit union may invest in and lend to a credit union service organization within the following limits:

(1) in shares, stocks or obligations of a credit union service organization, up to one percent of the total paid-in and unimpaired capital and surplus of the credit union, with the approval of the director;

(2) in loans to credit union service organizations, up to one percent of the total paid-in and unimpaired capital and surplus of the credit union, with the approval of the credit union's board of directors.

N.M. Code R. § 12.17.4.8

10/19/90; 9/30/97; Recompiled 10/15/01