reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-60 - First meetings of stockholders and directors; adoption of bylaws.

A. After the capital structure has been fully paid, a meeting of the stockholders shall be called by the incorporators to elect directors, to adopt bylaws and to call the first meeting of directors for the election of officers.
B. Bylaws shall be adopted and may be amended by a vote of the holders of a majority of the outstanding voting shares voted at a meeting of the stockholders, but the bylaws may provide for amendment by the board of directors of any provisions other than those approved by the commissioner [director of the financial institutions division of the regulation and licensing department] and relating to the duties and term of office.
History:
1953 Comp., § 48-22-48, enacted by Laws 1963, ch. 305, § 48.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
10 Am. Jur. 2d Banks § 330.
9 C.J.S. Banks and Banking §§ 47, 98.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-61 - Certificate of authority.

A. A request for a certificate of authority shall be made to the commissioner [director of the financial institutions division of the regulation and licensing department] after he has approved the application to file the articles of incorporation with the corporation commission [public regulation commission] and all requirements have been met. The request shall contain:
(1) the address at which the bank will operate;
(2) a statement that all of the bylaws adopted have been attached as an exhibit to the request;
(3) a statement that the full amount of the authorized capital structure has been paid to the escrow agent;
(4) the signed oaths of the directors; and
(5) such other information as the commissioner [director of the financial institutions division] may require to enable him to determine whether a certificate of authority should be issued.
B. The commissioner [director] shall approve the request for a certificate of authority within twenty days after the request has been accepted by him and he has been satisfied that all requirements have been complied with and he shall issue a certificate of authority for the bank to transact business. Before actually transacting any banking business or accepting any deposits, the applicant must file with the commissioner [director] satisfactory proof showing that insurance of deposits has been obtained through the federal deposit insurance corporation or other appropriate agency or instrumentality of the United States government.
C. It is unlawful for a proposed state bank to perform any act, other than to perfect its organization, before receiving a certificate of authority to operate.
D. If the commissioner [director] denies the request for a certificate of authority, he shall within twenty days of such action mail a notice to the incorporators, stating the reasons for denying the certificate of authority.
E. If no request for a certificate of authroity [authority] is filed within one year following the grant of permission to organize, or if a certificate of authority has been finally denied, or if the bank fails to commence business within one year after the issuance of a certificate of authority, the proposed bank, or any money paid by subscribers to stock, shall be liquidated and distributed in accordance with the order of the commissioner [director of the financial institutions division]. If an improper expenditure has been made, the commissioner [director] may order the persons who were incorporators or directors at the time to restore the sum by equal contributions.
History:
1953 Comp., § 48-22-49, enacted by Laws 1963, ch. 305, § 49; 1975, ch. 330, § 35.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Laws 1998, ch. 108, § 80 provided that references to the state corporation commission be construed as references to the public regulation commission.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
10 Am. Jur. 2d Banks § 22.
9 C.J.S. Banks and Banking § 36.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-62 - Amendment of articles of incorporation.

A. A state bank may apply to the commissioner [director of the financial institutions division of the regulation and licensing department] to amend its articles of incorporation or to change its location.
B. An application for an amendment of the articles of incorporation changing the authorized capital or the number and par value of the shares or to acquire or abandon trust powers or to change its location must be authorized by the vote of two-thirds of the outstanding voting stock voted at a meeting of the stockholders. Any other application may be authorized by the vote of a majority of the outstanding voting stock voted at a meeting of the stockholders.
C. Notice of the application shall be sent to such persons and organizations as the commissioner [director] may require.
D. The commissioner [director] shall approve an application:
(1) to change the name of the corporation, if the proposed name is not deceptive or misleading;
(2) to change the number and par value of the shares without altering the total capital, unless such change will inequitably affect the interest of any stockholders and the bank does not have sufficient surplus and undivided profits to pay dissenting shareholders the fair value of their shares;
(3) to increase the total capital by increasing the amount of common stock, when the new capital has been fully paid in cash.
E. The commissioner [director] may, in his discretion, permit other amendments if the public and interested parties would be served by granting the application and shall be guided by the standards prescribed for the approval of an application for permission to organize, insofar as they are reasonably applicable.
History:
1953 Comp., § 48-22-50, enacted by Laws 1963, ch. 305, § 50.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
10 Am. Jur. 2d Banks § 26.
9 C.J.S. Banks and Banking § 33.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-63 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1991, ch. 12, § 3 repeals 58-1-63 NMSA 1978, being Laws 1963, ch. 305, § 51, relating to county with branch bank, effective June 14, 1991. For provisions of former section,
see
the 1990 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-67 - Fidelity bonds and other insurance.

A. The directors of a state bank shall direct and require good and sufficient fidelity bonds on all active officers and employees, whether or not they draw salary or compensation, which bonds shall provide for indemnity to such bank on account of any losses sustained by it as the result of any dishonest, fraudulent or criminal act or ommission [omission] committed or omitted by them acting independently or in collusion or combination with any person or persons. Such bonds may be in individual, schedule or blanket form, and the premiums therefor shall be paid by the bank.
B. The said directors shall also direct and require suitable insurance protection to the bank against burglary, robbery, theft and other similar insurable hazards to which the bank may be exposed in the operations of its business on the premises or elsewhere.
C. The directors shall be responsible for prescribing at least once in each year the amount or penal sum of the bonds or policies and the sureties or underwriters thereon, after giving due and careful consideration to all known elements and factors constituting such risk or hazard. This action shall be recorded in the minutes of the board of directors and thereafter be reported to the commissioner [director of the financial institutions division of the regulation and licensing department] and be subject to his approval.
History:
1953 Comp., § 48-22-55, enacted by Laws 1963, ch. 305, § 55.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Cross references.
— For surety companies,
see
Chapter 46, Article 6 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
10 Am. Jur. 2d Banks § 82.
Insurance of banks against forgeries, 52 A.L.R. 1379.
Insurance of bank against larceny and false pretenses, 15 A.L.R.2d 1006.
Defalcations by executive officer or employee, liability of directors for, 25 A.L.R.3d 941.
Construction and effect of arrangement under which insurance premiums are paid automatically via insurer's draft on insured's bank account, 45 A.L.R.3d 1349.
9 C.J.S. Banks and Banking § 102.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-68 - Authority to declare dividends.

The board of directors of a state bank may declare dividends not more than once in each calendar quarter from undivided profits if:
(1) the undivided profits account has been maintained in accordance with the Banking Act; and
(2) the reserve against deposits required by the Banking Act is not and will not thereby be impaired.
History:
1953 Comp., § 48-22-56, enacted by Laws 1963, ch. 305, § 56.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
10 Am. Jur. 2d Banks § 69.
Validity of cancellation of accrued dividends on preferred bank stock, 8 A.L.R.2d 893.
9 C.J.S. Banks and Banking § 60.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-69 - Capital, surplus and undivided profits; accounting requirements.

A. No credit shall be entered in the undivided profits account founded upon an unrealized appreciation in the value of any type of asset except accretion of discounts on investments securities in accordance with generally accepted accounting principles. Before any net profits are credited to the undivided profits account, proper deduction shall be made for all expenditures, accrued expenses, accrued taxes, losses, bad debts and any write-offs or other deductions, including interest accrued and uncollected, required by the director.
B. No transfer shall be made from the surplus account to the undivided profits account or to any but the capital stock account if the surplus after the transfer would be less than the capital stock.
History:
1953 Comp., § 48-22-57, enacted by Laws 1963, ch. 305, § 57; 1971, ch. 80, § 1; 1991, ch. 120, § 5.
ANNOTATIONS
The 1991 amendment,
effective June 14, 1991, in the second sentence in Subsection A, substituted "director" for "commissioner"; deleted former Subsection B pertaining to debit balances being charged to the surplus account; and redesignated former Subsection C as Subsection B.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
10 Am. Jur. 2d Banks §§ 69, 70.
9 C.J.S. Banks and Banking §§ 48 et seq., 60.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-70 - Deposit insurance; membership in federal reserve system.

A state bank shall obtain insurance of its deposits by the United States or any agency thereof, and may acquire and hold membership in the federal reserve system.
History:
1953 Comp., § 48-22-58, enacted by Laws 1963, ch. 305, § 58.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
10 Am. Jur. 2d Banks § 437.
Right of Federal Deposit Insurance Corporation to injunctive relief in enforcement of its regulations, 22 A.L.R. Fed. 918.
9 C.J.S. Banks and Banking § 650.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-71 - Waivers; corporate action by unanimously signed writing.

When notice is required to be given to stockholders or directors under the Banking Act, or the articles of incorporation or bylaws of any state bank, a waiver of notice in writing, signed by the person or persons entitled to the notice, whether before or after the time stated in the notice, shall be deemed equivalent to notice. If the vote of stockholders or directors at a meeting is required or permitted in connection with any corporate action, by any section of the Banking Act, the meeting and vote of stockholders or directors may be dispensed with, if all of the stockholders or directors who would have been entitled to vote upon the action if the meeting were held, consent in writing to the corporate action. If the action consented to would have required the filing of a certificate under the Banking Act, if the action had been voted upon by the stockholders or directors at a meeting, the certificates filed shall state that written consent has been given under this section in lieu of stating that the stockholders or directors have voted upon the corporate action in question, if a statement of voting is required in the certificate.
History:
1953 Comp., § 48-22-59, enacted by Laws 1963, ch. 305, § 59.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
9 C.J.S. Banks and Banking §§ 49, 50, 616.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-74 - Requirements of reorganization plan.

A. A plan of reorganization shall not be proposed under the Banking Act unless:
(1) the plan is feasible and fair to all classes of depositors, creditors and stockholders;
(2) the face amount of the interest accorded to any class of depositors, creditors or stockholders under the plan does not exceed the value of the assets upon liquidation less the full amount of the claim of all prior classes, subject, however, to any fair adjustment for new capital that any class will pay in under the plan;
(3) the plan provides for the issuance of common stock in an amount that will provide an adequate ratio to deposits;
(4) any exchange of new common stock for obligations or stock of the bank will be effected in inverse order to the priorities in liquidation of the classes that will retain an interest in the bank, and upon terms that fairly adjust any change in the relative interests of the respective classes that will be produced by the exchange;
(5) the plan assures the removal of any director, officer or employee responsible for any unsound or unlawful action, or the existence of an unsound condition; and
(6) any merger or consolidation provided by the plan conforms to the requirements of the Banking Act.
B. Whenever in the course of reorganization supervening conditions render the plan unfair, or its execution impractical, the commissioner [director of the financial institutions division of the regulation and licensing department] may modify the plan or liquidate the institution. Any such action shall be taken by order upon appropriate notice.
History:
1953 Comp., § 48-22-62, enacted by Laws 1963, ch. 305, § 62.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
10 Am. Jur. 2d Banks § 821.
Character as holder in due course of bank which takes over assets and assumes liabilities of another bank, 76 A.L.R. 1329.
Guarantor: liability of guarantor of or surety for bank deposit as affected by reorganization, merger or consolidation of bank, 78 A.L.R. 381.
Transfer of assets: novation where bank transfers its assets to another bank which assumes its obligation, 79 A.L.R. 82.
Dissenting stockholders: construction and effect of provisions for payment of dissenting stockholders in statutes relating to merger, consolidation or reorganization of banks or other corporations, 87 A.L.R. 597, 162 A.L.R. 1237, 174 A.L.R. 960.
Constitutionality of recent legislation relating to merger, consolidation or reorganization of banks as affected by rights of dissenting creditors or stockholders, 92 A.L.R. 1337, 96 A.L.R. 1445, 104 A.L.R. 1203.
Estoppel by acquiescence or delay to question validity of plan for reorganization of bank, 139 A.L.R. 659.
9 C.J.S. Banks and Banking § 155 et seq.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-76 - Unauthorized conduct of banking business.

It is unlawful for any unauthorized person to engage in the business of holding deposits or to represent that he is or is acting for a bank or to use an artificial or corporate name that purports to be or suggests that it is the name of a bank.
History:
1953 Comp., § 48-22-64, enacted by Laws 1963, ch. 305, § 64; 1997, ch. 23, § 8.
ANNOTATIONS
The 1997 amendment,
effective July 1, 1997, substituted "holding deposits or" for "receiving deposits, discounting evidences of indebtedness or receiving money for transmission," and substituted "that" for "which" preceding "purports".
Am. Jur. 2d, A.L.R. and C.J.S. references. —
10 Am. Jur. 2d Banks § 25.
9 C.J.S. Banks and Banking §§ 19, 748.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-77 - Receipt of deposits while insolvent.

It is unlawful for a bank to receive any deposit while insolvent or for an officer, director or employee who knows or, in the proper performance of his duty, should know of such insolvency to receive or authorize the receipt of such deposit.
History:
1953 Comp., § 48-22-65, enacted by Laws 1963, ch. 305, § 65.
ANNOTATIONS
Insolvency essential element of offense.
— It was held under former law that insolvency of the bank at the time of receiving the deposit is the essential element of the offense.
State v. Nance
, 1927-NMSC-004, 32 N.M. 158, 252 P. 1002.
Depositor's claim without preference.
— While Laws 1915, ch. 67, § 41, gives a depositor a right of action to recover deposits accepted by an insolvent bank, it does not give the depositor's claim preference over other claims.
Jameson v. First Sav. Bank & Trust Co.
, 1935-NMSC-084, 39 N.M. 545, 51 P.2d 607 (decided under former law).
Sufficiency of indictment.
— It was held under former law that the indictment alleging that defendant received a deposit "then and there having knowledge of the fact that such bank was insolvent" is sufficient.
State v. Nance
, 1927-NMSC-004, 32 N.M. 158, 252 P. 1002.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
10 Am. Jur. 2d Banks §§ 198, 242.
Constitutionality of statute making failure of bank prima facie evidence of knowledge of insolvency at time of receipt of deposits, 51 A.L.R. 1154, 86 A.L.R. 179, 162 A.L.R. 495.
Constitutionality of statute rendering officers or directors of bank criminally liable for receiving deposit after insolvency, 76 A.L.R. 530.
What amounts to a deposit within statute in relation to civil or criminal liability for accepting deposit when bank is unsafe or insolvent, 76 A.L.R. 1320.
When limitation commences to run against action to enforce personal liability of bank officers or directors for receiving deposits after knowledge of bank's unsafe condition, 78 A.L.R. 897.
Sufficiency of evidence to show defendant's knowledge of bank's insolvency in prosecution for receiving deposits knowing bank insolvent, 87 A.L.R. 504.
Civil liability of bank officer or director permitting deposit after insolvency of bank, 87 A.L.R. 1402.
Negligence in failing to discover insolvency of bank as equivalent of knowledge, or substitute therefor, as regards criminal responsibility of bank officer or employee for receiving deposit after insolvency, 98 A.L.R. 615.
Statute as to taking deposit when insolvent as special or class legislation, or as denying equal protection of laws, 111 A.L.R. 144.
9 C.J.S. Banks and Banking § 740 et seq.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-78 - Unlawful service as officer or director.

It is unlawful for any person to serve as an officer or director of a bank, who:
A. is an officer, director or employee of a directly competitive bank in the same community;
B. has been convicted of an offense constituting, in the jurisdiction in which the judgment was rendered, a violation of the banking laws or a felony, or who has been found liable, either in a civil or criminal action, for a breach of trust; or
C. is indebted to the bank for more than thirty days upon a judgment that has become final.
History:
1953 Comp., § 48-22-66, enacted by Laws 1963, ch. 305, § 66.
ANNOTATIONS
Prosecutions under general fraud and conspiracy statutes not prohibited.
— There is no basis for holding that the specific language of this section prohibits prosecutions under the general fraud and conspiracy statutes.
State v. Thoreen
, 1978-NMCA-024, 91 N.M. 624, 578 P.2d 325, cert. denied, 91 N.M. 610, 577 P.2d 1256.
Bank cashier was guilty of embezzlement
where he was unable to account for shrinkage in proceeds of sale of certain bonds entrusted to bank for sale.
State v. Gaunt
, 1926-NMSC-049, 32 N.M. 17, 250 P. 634 (decided under former law).
Am. Jur. 2d, A.L.R. and C.J.S. references. —
10 Am. Jur. 2d Banks § 180.
Officer or employee of depository or bailee as sustaining a criminal charge against him of embezzlement of property of depositor or bailor, 45 A.L.R. 933.
Liability of bank in respect to funds of third persons misappropriated by bank officer or employee and used to cover his own overdraft or defalcation, 48 A.L.R. 464.
Aiding and abetting misapplication of bank funds by officer or employee, criminal responsibility for, 74 A.L.R. 1112, 131 A.L.R. 1322.
Rights and liabilities of bank paying or giving credit for personal check of own officer whose account is not good, 171 A.L.R. 880.
9 C.J.S. Banks and Banking §§ 107, 113, 115, 121.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-79 - Unlawful gratuity or compensation; transactions of persons connected with state bank.

A. It is unlawful for an affiliate of a bank or for an officer, director or employee of a bank, or affiliate of a bank:
(1) to solicit, accept or agree to accept, directly or indirectly, from any person other than the institution any gratuity, compensation or other personal benefit for any action taken by the institution or for endeavoring to procure any such action;
(2) to have any interest, direct or indirect, in the purchase at less than its face value of any evidence of indebtedness issued by the institution;
(3) to require any borrower to purchase insurance from an affiliate of a bank, or from an officer, director or employee of a bank or affiliate of a bank, or through a particular insurance company, agent, solicitor or broker, as a condition precedent to the making of a loan or to decline adequate existing insurance where such existing insurance is provided by an insurance company licensed by this state. Provided, however, a bank may require a borrower to supply such insurance as may reasonably be necessary for the protection of the bank in making a loan.
B. In this section the term "affiliate" includes:
(1) any person who holds a majority of the stock of a bank or has been determined by the commissioner [director of the financial institutions division of the regulation and licensing department] to hold a controlling interest therein, any other corporation in which such person owns a majority of the stock and any partnership in which he has an interest;
(2) any corporation in which the institution or an officer, director or employee thereof holds a majority of the stock and any partnership in which such person has an interest;
(3) any corporation of which a majority of the directors are officers, directors or employees of the institution or of which officers, directors, trustees or employees constitute a majority of the directors of the institution.
History:
1953 Comp., § 48-22-67, enacted by Laws 1963, ch. 305, § 67.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
10 Am. Jur. 2d Banks § 222.
Fraud: responsibility of bank for fraud of officer or agent inducing customer or debtor of bank to enter into transaction with such officer or agent personally or with third person, 117 A.L.R. 389.
9 C.J.S. Banks and Banking §§ 117, 119, 121.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-80 - Unlawful concealment of transaction.

It is unlawful for an officer, director, employee, attorney or agent of a bank to conceal or endeavor to conceal any transaction of the bank from any officer, director or employee of the bank or any official or employee of the department [financial institutions division of the regulation and licensing department] to whom it should properly be disclosed.
History:
1953 Comp., § 48-22-68, enacted by Laws 1963, ch. 305, § 68.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
9 C.J.S. Banks and Banking §§ 107, 113, 115, 121, 734, 735.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-81 - Improper maintenance of accounts; false or deceptive entries and statements.

It is unlawful for an officer, director, employee or agent of a bank to:
A. maintain or authorize the maintenance of any account of the bank in a manner which, to his knowledge, does not conform to the requirements prescribed by the Banking Act or by the commissioner [director of the financial institutions division of the regulation and licensing department];
B. make, with intent to deceive, any false or misleading statement or entry or omit any statement or entry that should be made in any book, account, report or statement of the institution;
C. obstruct or endeavor to obstruct a lawful examination of the institution by an officer or employee of the department [financial institutions division].
History:
1953 Comp., § 48-22-69, enacted by Laws 1963, ch. 305, § 69.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
10 Am. Jur. 2d Banks § 231 et seq.
Construction and application of statutes relating to civil liability of directors, officers or employees of bank, in case of false reports or statements, 114 A.L.R. 472.
9 C.J.S. Banks and Banking §§ 736, 737.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-82 - Reimbursement for fines and penalties.

A. It is unlawful for a state bank to pay a fine or penalty imposed by law upon any other person or any judgment against such person or to reimburse directly or indirectly any person by whom such fine, penalty or judgment has been paid, except:
(1) in the settlement of a bank's own liability or in connection with the acquisition of property against which a judgment is a lien;
(2) if provided in its articles of incorporation, a bank may indemnify its directors, officers and employees for expenses, fines, penalties and judgments reasonably incurred in actions to which the directors, officers or employees are parties or potential parties by reason of the performance of their official duties. The provisions of this paragraph shall not allow the indemnification of directors, officers or employees of a bank against expenses, penalties or other payments incurred in an administrative proceeding or action instituted by an appropriate bank regulatory agency, which proceeding or action results in a final order assessing civil money penalties or requiring affirmative action by an individual in the form of payments to the bank; and
(3) if provided in its articles of incorporation, a bank may acquire and pay the premiums for insurance covering the liability of its directors, officers or employees, except that the provisions of this paragraph shall exclude insurance coverage for a formal order assessing civil money penalties against a bank director, officer or employee.
B. In accordance with his supervisory responsibilities, the director may, in his discretion, review the threat to bank safety and soundness posed by any indemnification or proposed indemnification of directors, officers or employees by a bank or for the consistency of any such indemnification with the standards adopted by that bank in its articles of incorporation. Based upon this review, the director may direct a prospective modification of a specific indemnification by a bank through appropriate administrative action.
History:
1978 Comp., § 58-1-82, enacted by Laws 1995, ch. 190, § 12.
ANNOTATIONS
Repeals and reenactments.
— Laws 1995, ch. 190, § 12, repeals former section 58-1-82 NMSA 1978, as enacted by Laws 1963, ch. 305, § 70, relating to unlawful payment of penalties and judgments against others including directors and officers, and enacts the above section, effective June 16, 1995. For provisions of former section, see 1991 Replacement Pamphlet.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
9 C.J.S. Banks and Banking §§ 8, 9.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-83 - Unlawful use of words "safe deposit.".

It is unlawful for any person to use the words "safe deposit," "safety deposit" or other words deceptively similar thereto, in connection with the rental of storage space, or in the title or name under which business was done, unless he is:
A. a person subject to the jurisdiction of the banking department [financial institutions division of the regulation and licensing department] of this state;
B. a manufacturer or dealer in safe deposit facilities or equipment;
C. an association, the membership of which is composed of officers or institutions subject to the jurisdiction of the banking department [financial institutions division] of this or other states; or
D. a person who makes no charge for such space.
History:
1953 Comp., § 48-22-71, enacted by Laws 1963, ch. 305, § 71.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
10 Am. Jur. 2d Banks § 476.
9 C.J.S. Banks and Banking §§ 8, 9.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-84 - Unlawful sanctions; violations of rules and orders.

A. Any person responsible for an act or omission expressly declared to be unlawful by the Banking Act is guilty:
(1) of a misdemeanor punishable by imprisonment for a term not exceeding one year or a fine not exceeding five thousand dollars ($5,000) or both;
(2) of a felony punishable by imprisonment not exceeding five years or a fine not exceeding ten thousand dollars ($10,000) or both, if the act or omission was done or made with intent to defraud.
B. An officer, director, employee, agent or attorney of a bank is responsible for an act or omission of the institution declared to be unlawful by the Banking Act whenever, knowing that such act or omission is unlawful, he participates in authorizing, executing, ratifying or concealing such act, or in authorizing or ratifying such omission or, having a duty to take the required action, omits to do so.
C. A director shall be deemed to participate in any action of which he has knowledge taken or omitted to be taken by the board of which he is a member unless he dissents therefrom in writing and promptly notifies the commissioner [director of the financial institutions division of the regulation and licensing department] of his dissent.
D. It is unlawful to knowingly violate any lawful rule, regulation or order of the commissioner [director].
History:
1953 Comp., § 48-22-72, enacted by Laws 1963, ch. 305, § 72.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
10 Am. Jur. 2d Banks § 221 et seq.
9 C.J.S. Banks and Banking § 31.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1 - Banking Generally › Section 58-1-85 - Injunction.

Whenever a violation of the Banking Act, by a bank or an officer, director or employee thereof, is threatened or impending and will cause substantial injury to the institution or to the depositors, creditors or stockholders thereof, the district court of Santa Fe county may, upon the suit of the commissioner [director of the financial institutions division of the regulation and licensing department], issue an injunction restraining such violation.
History:
1953 Comp., § 48-22-73, enacted by Laws 1963, ch. 305, § 73.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Severability clauses.
— Laws 1963, ch. 305, § 76, provides for the severability of the act if any part or application thereof is invalid.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
9 C.J.S. Banks and Banking § 478.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1A - Consumer Credit Banks › Section 58-1A-5 - Credit card account; terms and conditions.

A credit card account between a domestic bank or consumer credit bank and a borrower, wherever the borrower's place of residence, shall be governed solely by the laws of New Mexico and federal law, where applicable. Unless otherwise expressly agreed in writing by the parties, a credit card account between a consumer credit bank and a borrower shall be governed by the provisions of Sections 56-8-1 through 56-8-30 NMSA 1978. A domestic bank or consumer credit bank may, as provided in the written agreement governing the credit card account, modify the terms or conditions of the credit card account upon prior written notice of the modification as specified by credit card account agreement or by the federal Truth in Lending Act.
History:
Laws 1993, ch. 11, § 5; 1995, ch. 33, § 3.
ANNOTATIONS
Cross references.
— For the federal Truth in Lending Act,
see
15 U.S.C. § 1601 et seq.
The 1995 amendment,
effective June 16, 1995, added the language beginning "a credit card account" at the end of the second sentence.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
What constitutes Truth in Lending Act violation which "was not intentional and resulted from bona fide error not withstanding maintenance of procedures reasonably adapted to avoid any such error" within meaning of § 130(c) of Act (15 USCA § 1640(c)), 153 A.L.R. Fed. 193.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1A - Consumer Credit Banks › Section 58-1A-6 - Regulation of consumer credit banks.

A. A consumer credit bank organized under the laws of New Mexico shall be subject to the supervision, regulation and examination of the director.
B. The director shall adopt and promulgate rules and regulations implementing the provisions of the Consumer Credit Bank Act, including provisions for the formation and organization of a consumer credit bank.
History:
Laws 1993, ch. 11, § 6; 1995, ch. 33, § 4.
ANNOTATIONS
The 1995 amendment,
effective June 16, 1995, added the language beginning "including provisions" at the end of Subsection B.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1A - Consumer Credit Banks › Section 58-1A-7 - Supervision fees.

A. Each consumer credit bank shall annually pay to the director a supervision fee, calculated on the basis of total assets as of December 31 of the immediately previous year:
Total assets (000):
Assessment:
Over
But not
This
Plus
Of excess
over
amount
over (000)
0
200,000
7,500
0.0000250
100,000
200,000
500,000
10,000
0.0006667
200,000
500,000
1,000,000
30,000
0.0000500
500,000
1,000,000
2,000,000
55,000
0.0000400
1,000,000
2,000,000
95,000
0.0000300
2,000,000
B. The fee shall be paid on or before March 1 of each year. For failure to pay the supervisor fee when due unless excused for cause by the director, the consumer credit bank shall pay to the financial institutions division of the regulation and licensing department one hundred dollars ($100) for each day of delinquency.
C. The director shall examine the condition of the consumer credit bank. A report of examination shall be sent to the board of directors of the consumer credit bank.
History:
Laws 1993, ch. 11, § 7; 1995, ch. 33, § 5.
ANNOTATIONS
The 1995 amendment,
effective June 16, 1995, rewrote Subsection A to substitute the provisions for calculation of the supervision fee on the basis of total assets for a fee of $7,500; redesignated the former third and fourth sentences of Subsection A as Subsection B and former Subsection B as Subsection C; and, in Subsection C, deleted "of the financial institutions division of the regulation and licensing department" following "director" in the first sentence and deleted the former third sentence relating to the fee for each consumer credit bank examination.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1A - Consumer Credit Banks › Section 58-1A-8 - Applicability.

A consumer credit bank shall be subject to the laws governing financial institutions except when the rights, powers, privileges or provisions of those laws are inconsistent with the rights, powers, privileges, provisions or limitations of the Consumer Credit Bank Act, in which case the latter shall control.
History:
Laws 1993, ch. 11, § 8.
ANNOTATIONS
Severability clauses.
— Laws 1993, ch. 11, § 9 provides for the severability of the act if any part or application thereof is held invalid.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1B - Interstate Bank Acquisitions › Section 58-1B-1 - Short title.

Sections 1 through 12 [58-1B-1 to 58-1B-11 NMSA 1978] of this act may be cited as the "Interstate Bank Acquisition Act".
History:
Laws 1996, ch. 2, § 1.
ANNOTATIONS
Cross references.
— For the Interstate Bank Branching Act,
see
58-1C-1 NMSA 1978.
For permitted interstate acquisitions,
see
58-26-4 NMSA 1978.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1B - Interstate Bank Acquisitions › Section 58-1B-3 - Purpose and intent of act.

The purpose of the Interstate Bank Acquisition Act is to establish the conditions under which a company may acquire a New Mexico bank or a New Mexico bank holding company. In enacting it the legislature intends to avoid discrimination against out-of-state bank holding companies or foreign bank holding companies in any manner that would violate Section 3(d) of the Bank Holding Company Act.
History:
Laws 1996, ch. 2, § 3.
ANNOTATIONS
Cross references.
— For Section 3(d) of the Bank Holding Company Act,
see
12 U.S.C. § 1842(d).
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1B - Interstate Bank Acquisitions › Section 58-1B-4 - Permitted acquisitions.

A. Except as provided in Subsection B of this section, a company may not acquire a New Mexico state bank or a New Mexico bank holding company without the prior approval of the director unless federal law expressly permits the acquisition without that approval.
B. The prohibition of Subsection A of this section does not apply if the acquisition is made:
(1) solely for the purpose of facilitating an acquisition otherwise permitted pursuant to the Interstate Bank Acquisition Act;
(2) in a transaction arranged by the director or another bank supervisory agency to prevent the insolvency or closing of the acquired bank; or
(3) in a transaction in which a bank forms its own bank holding company, if the ownership rights of the former bank shareholders are substantially similar to those of the shareholders of the new bank holding company.
C. In a transaction for which the director's approval is not required under this section, the acquiring company shall give written notice to the director at least ninety days before the effective date of the acquisition unless a shorter period of notice is required under applicable federal law.
History:
Laws 1996, ch. 2, § 4.
ANNOTATIONS
Cross references.
— For permitted interstate acquisitions,
see
58-26-4 NMSA 1978.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1B - Interstate Bank Acquisitions › Section 58-1B-5 - Required application; forms.

A. A company that proposes to make an acquisition pursuant to the Interstate Bank Acquisition Act shall:
(1) file with the director a copy of the application that the company has filed with the responsible federal bank supervisory agency and any additional information prescribed by the director; and
(2) pay to the director any application fee prescribed by the director.
B. As long as they are consistent with the effective discharge of the director's responsibilities, the application and reporting forms established pursuant to the Interstate Bank Acquisition Act shall conform to those established for the same purposes by the board of governors of the federal reserve system pursuant to the Bank Holding Company Act.
History:
Laws 1996, ch. 2, § 5.
ANNOTATIONS
Cross references.
— For the Bank Holding Company Act,
see
Subsection E of 58-1B-2 NMSA 1978.
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1B - Interstate Bank Acquisitions › Section 58-1B-6 - Standards for approval.

A. In deciding whether to approve an application for a proposed acquisition pursuant to the Interstate Bank Acquisition Act, the director shall consider whether the acquisition may:
(1) be detrimental to the safety and soundness of the New Mexico state bank or the New Mexico bank holding company to be acquired;
(2) result in a substantial reduction of competition in this state; or
(3) have a significantly adverse effect on the convenience and needs of a community in this state served by the New Mexico state bank or the New Mexico bank holding company to be acquired.
B. Except as otherwise expressly provided in this section, the director shall not approve an acquisition pursuant to the Interstate Bank Acquisition Act if upon effecting the transaction it would result in the applicant, including a depository institution affiliated with the applicant, holding an undue concentration of deposits totaling forty percent or more of the total deposits in all depository institutions in New Mexico.
C. The director may adopt a regulation establishing a procedure authorizing the waiver of the limitation on deposit concentration set forth in Subsection B of this section to prevent the insolvency or closing of a New Mexico state bank.
D. The director shall not approve an application for an acquisition pursuant to the Interstate Bank Acquisition Act unless either the New Mexico bank to be acquired, or at least one New Mexico bank subsidiary of the bank holding company to be acquired, has as of the proposed date of acquisition been in existence and in continuous operation under an active charter for a period of at least five years, except that the director may approve an application for an acquisition of a consumer credit bank chartered pursuant to the Consumer Credit Bank Act [58-1A-1 to 58-1A-8 NMSA 1978] even though the consumer credit bank has not been in continuous operation under an active charter for a period of at least five years.
History:
Laws 1996, ch. 2, § 6.
ANNOTATIONS
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1B - Interstate Bank Acquisitions › Section 58-1B-7 - Procedures relating to applications.

A. The director shall approve or disapprove an application for acquisition pursuant to the Interstate Bank Acquisition Act within ninety days after receipt of a completed application unless the director requests additional information from the applicant following receipt of a completed application in which case the time limit for decision by the director is the later of:
(1) the date set forth in this subsection; or
(2) thirty days after the director's receipt of the requested additional information.
B. The director may hold a public hearing in connection with an application if a significant issue of law or fact has been raised with respect to the proposed acquisition.
C. If the director holds a public hearing in connection with an application, the time limit specified in Subsection A of this section shall be extended to thirty days after the conclusion of the public hearing.
D. An application is deemed approved if the director takes no action on the application within the time limits specified in this section.
History:
Laws 1996, ch. 2, § 7.
ANNOTATIONS
2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 1B - Interstate Bank Acquisitions › Section 58-1B-8 - Reports; examinations.

A. To the extent specified by the director by regulation, order or written request, each bank holding company that directly or indirectly controls a New Mexico state bank or a New Mexico bank holding company, or the home state regulator of the company, shall submit to the director copies of each financial report filed by the company with any bank supervisory agency within fifteen days after the report is filed with the agency unless the report is one the disclosure of which is prohibited by federal or state law.
B. To the extent disclosure is permitted by state or federal law, a bank holding company that controls a New Mexico state bank or a New Mexico bank holding company, or the home state regulator of the controlling bank holding company, shall provide the director copies of any reports of examination of that bank holding company or of the New Mexico bank holding company.
C. The director may examine a New Mexico bank holding company whenever the director has reason to believe that the company is not being operated in compliance with the laws of this state or in accordance with safe and sound banking practices. The provisions of Section 58-1-46 NMSA 1978 shall apply to the examination.
History:
Laws 1996, ch. 2, § 8.
ANNOTATIONS