New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 7 - PROCEDURES FOR DESIGNATING A FISCAL AGENT AND CUSTODY BANK OF NEW MEXICO › Section 2.60.7.9 - DESIGNATION PROCEDURES: CUSTODY BANK

Current through Register Vol. 35, No. 13, July 16, 2024
The state board of finance may accept and review proposals
				  from banks to be custody bank for the state of New Mexico, submitted in
				  response to request for proposals issued in conformance with the state
				  procurement code and the applicable requlations.
A. The board's request for proposals for
				designation of a custody bank shall include the following minimum
				qualifications and requirements:
(1) The bank
				must have an unimpaired capital and surplus, tier 1 core capital as defined by
				federal regulations of at least twenty million dollars ($20,000,000) and must
				be doing business in New Mexico.
(2) The bank must agree that it shall
				maintain and furnish at its expense throughout the term of the agreement a
				banker's blanket bond per occurrence coverage in a minimum amount of fifty
				million dollars ($50,000,000) and additional coverage for electronic computer
				crime losses in the minimum amount of twenty-five million dollars ($25,000,000)
				per occurrence. Each such coverage must contain terms and conditions acceptable
				to the state board of finance.
(3)
				The bank must agree to wholly indemnify the state for any and all loss, damage,
				cost, damages, expenss (including, without limitation, legal fees and expenses)
				and liability (collectively hereinafter "loss") resulting from errors,
				omissions, fraud, embezzlement, theft, negligence or neglect by the custody
				bank, its employees, officers, agents and directors in performing their duties
				under the custody bank agreement. The custody bank must also acknowledge and
				agree that any loss shall, unless such loss can be demonstrated by the custody
				bank to have been due to a cause or causes beyond the reasonable control of the
				custody bank (such as acts of God, acts of the public enemy, insurrections,
				riots, fires, explosions, orders or acts of civil or military authority and
				other cataclysmic events, to the extent all reasonable and diligent precautions
				by the custody bank could not have prevented the damage or loss resulting from
				any such event) be conclusively presumed to be the result of errors, omissions,
				fraud, embezzlement, theft, negligence or neglect on the part of the custody
				bank. Limited exceptions to this indemnification requirement may be permitted
				in any agreement entered by the board with the custody bank as to information
				supplied by the state treasurer or any other investing agency (i.e. public
				employees retirement associaton, education retirement board, state investment
				council) pursuant to any safekeeping or other collateral agreement or such
				other limited exception as may be required to in order to enable the provision
				of a particular service by the custody bank. Any such limited exception must be
				included in the custody bank agreement and be acceptable to and specifically
				approved by the board.