N.M. Admin. Code § 2.79.1.11

Current through Register Vol. 35, No. 21, November 5, 2024

Section 2.79.1.11 - ACCOUNT OWNER AGREEMENT

The program administrator operating an approved individual development account program shall be required to enter into an account owner agreement containing the following minimum requirements with an eligible individual:

A. a provision that the program administrator and account owner shall establish, in a timely manner, an individual development account in an authorized financial institution;

B. a deposit plan specifying the amount, form and schedule of deposits to be made by the account owner;

C. the rate at which the account owner's deposits will be matched;

D. the allowable use for which the account is maintained;

E. a provision that the program administrator shall provide financial literacy and asset-specific training approved by the division;

F. a provision that the account owner shall attend the financial literacy and asset-specific training;

G. an explanation of the withdrawal policies, including:

(1) the policies governing withdrawal of savings upon completion of the program,

(2) early withdrawal due to an account owner's decision to leave the program,

(3) termination of account due to non-compliance by the account owner, and

(4) emergency withdrawals including the provision that if an account owner withdraws money from his individual development account for a use other than an allowable use, he forfeits a proportionate amount from the reserve account unless an amount equal to the withdrawn money is deposited into his individual development account within the twelve months following the withdrawal;

H. a provision that the account owner may request an emergency withdrawal;

I. a provision allowing for the development of a contingency plan in the event the account owner exceeds or fails to meet the savings goals outlined in the savings agreement;

J. a provision that the program administrator shall implement the contingency plan on record with the division in the event the organization is no longer able to operate the program [Paragraph (8) of Subsection A of 2.79.1.10 NMAC];

K. a provision that any agreement for the investment of assets shall be at the direction of the account owner after consultation with the program administrator;

L. a provision that the program administrator shall not require an account owner to make any purchase or enter into any commercial transaction with a specific individual, business, financial institution, or other entity, other than the authorized financial institution in which the individual development account savings account is held;

M. a provision designating one or more beneficiaries of the funds, plus accrued interest, deposited by the account owner in the individual development account in the event of the account owner's death;

N. a verification that the eligible individual maintains no other individual development account; and

O. a provision that the agreement may be modified only with the written concurrence of the program administrator and the account owner.

N.M. Admin. Code § 2.79.1.11

2.79.1.11 NMAC - N, 4/29/2005