2023 New Mexico Statutes › Chapter 6 - Public Finances › Article 10 - Public Money › Section 6-10-24.1 - State funds; limitation.

A. No person depositing or investing state funds in banks or savings and loan associations in New Mexico shall deposit or invest any funds if that deposit or investment when added to state funds already in that bank or savings and loan association would be in excess of four hundred percent of equity capital of the bank or four hundred percent of net worth of the savings and loan association or more than twenty-five percent of the total of that financial institution's deposits, whichever is less, as shown by the most recent quarterly statement of financial condition required by federal or state financial authorities as certified by an authorized officer of that institution. The funds held by the state fiscal agent bank as such fiscal agent bank and demand deposits held by a state checking depository bank shall not be considered in construing these limits. The twenty-five percent of total deposits limitation shall not apply to a newly chartered bank or savings and loan association in the first year of its operation.
B. No person depositing state funds in credit unions in New Mexico shall deposit any funds in excess of that which is insured by an agency of the United States.
C. For the purposes of this section, "state funds" means money in the custody of the state treasurer or deposited or invested by him or by any state agency, department or instrumentality in New Mexico banks, savings and loan associations or credit unions and does not include local funds, which include funds deposited by institutions enumerated in Article 12, Section 11 of the constitution of New Mexico.
D. In the event a bank or savings and loan association exceeds the limitations set forth in Subsection A of this section, any person charged with responsibility for investing or depositing state funds shall not deposit additional new funds, but may renew any maturing certificate of deposit at the interest rate applicable for new state fund deposits and may provide for the staged withdrawal of the amount of funds which exceeds such limitation from the bank or savings and loan association over a reasonable period of time in order to avoid causing the failure of the institution. If, however, withdrawal of the state funds is necessary to prevent loss of such funds, they shall be removed.
History:
Laws 1982, ch. 9, § 1; 1987, ch. 79, § 8; 1987, ch. 266, § 1.
ANNOTATIONS
1987 Multiple Amendments.
— Laws 1987, ch. 79, § 8 and Laws 1987, ch. 266, § 1 enacted different amendments to this section that can be reconciled. Pursuant to 12-1-8 NMSA 1978, Laws 1987, ch. 266, § 1, as the last act signed by the governor, is set out above and incorporates both amendments. The amendments enacted by Laws 1987, ch. 79, § 8 and Laws 1987, ch. 266, § 1 are described below.
Laws 1987, ch. 266, § 1, effective June 19, 1987, added a new Subsection B and redesignated the subsequent subsections accordingly; in Subsection C, added "or credit unions" following "savings and loan associations"; and, in Subsection D, at the end of the first sentence substituted "avoid causing the failure of the institution" for "assure that dislocation caused by such withdrawal is avoided" and added the last sentence.
Laws 1987, ch. 79, § 8, effective June 19, 1987, added Subsection B and redesignated the subsequent subsections; and, in Subsection C, added "or credit union" after "savings and loan associations" and made minor changes in language.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
63C Am. Jur. 2d Public Funds §§ 5, 11.
26A C.J.S. Depositaries § 8.