N.M. Code R. § 12.20.49.8

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

Section 12.20.49.8 - EXPANDED POWERS

A. Demand deposits: An association may accept non-interest-bearing demand deposits from:

(a) a commercial, corporate, business or agricultural entity for the sole purpose of effectuating payments thereto by a non business customer; or

(b) any person or organization having a business, corporate, commercial or agricultural loan relationship with the association. An association may extend secured or unsecured credit in the form of overdraft privileges specifically related to demand deposits, but such overdraft loans must be aggregated with other commercial loans for purposes of the five percent of assets limitation. Overdraft loans made under authority of this regulation must be made pursuant to proper underwriting and with due regard for safety and soundness.

B. Governmental unit now accounts: An association may offer NOW accounts as defined in OTS Regulations Section 561.29 for deposit of public funds by an officer, employee or agent of the United States, any state, county, municipality or political subdivision thereof, the District of Columbia, the commonwealth of Puerto Rico, American Samoa, Guam, any territory or possession of the United States or any political subdivision thereof.

C. Commercial loans: An association may invest up to five percent of its assets in secured or unsecured loans for commercial, corporate, business or agricultural purposes provided that loans to any one borrower shall not exceed the limits of OTS Regulations Section 563.93(c). Commercial loans made under authority of this regulation must be made with proper underwriting and with due regard for safety and soundness.

D. Consumer loans: An association may invest up to 30 percent of its assets in consumer loans. Investments in consumer loans no longer need to be aggregated with investments made in commercial paper and corporate debt securities. Section 2.1 (a) of Regulation 80-5 S and LB [now Paragraph (1) of Subsection A of 12.20.34.8 NMAC] is herewith rescinded.

N.M. Code R. § 12.20.49.8

10/15/82; 9/15/97; Recompiled 10/15/01