reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 21 - ADMINISTRATIVE PROCEDURES FOR NEW MEXICO FINANCIAL INSTITUTIONS APPLYING FOR DEPOSITS OF SEVERENCE TAX PERMANENT FUND › Section 2.60.21.9 - INVESTMENT MANAGEMENT POLICY

Current through Register Vol. 35, No. 13, July 16, 2024
The investment officer shall rule on applications and make
				  funds available to all financial institutions in accordance with the applicable
				  statutes and the investment criteria outlined below.
A. GENERAL STANDARDS GOVERNING APPLICATIONS:
(1) The applicant and the custodian or
				custodians designated by the state treasurer will have executed the form
				depository and custodial agreements for the severance tax permanent fund. The
				forms will then be approved and accepted by the state investment
				officer.
(2) The application shall
				comply with the fund limitations promulgated by statute and by the regulations
				of the council. In addition, the total deposits of state funds in a class C or
				class D institution shall not exceed 100 percent of net worth or primary
				capital.
(3) The rate of interest
				on all certificates of deposit shall be set at a market rate or 50 basis points
				over the bond equivalent yield of U.S. treasury securities of comparable
				maturity, whichever is greater. The treasury bonds, notes and bills section in
				the Wall Street Journal on the day the rate is set will be used as the
				reference. The state investment council will continuously monitor the interest
				rate and amend it as necessary.
(4)
				The exact maturity will be set by the state investment officer based on the
				cash management needs of the fund and on an analysis of risk versus
				maturity.
(5) The size of the
				certificate or certificates of deposit in each financial institution will be
				determined by the state investment officer in accordance with Section VI of
				these regulations [now Section 2.60.21.10 NMAC].
(6) If the terms of the deposit are not
				acceptable to the financial institution, then the institution retains the right
				to reject the deposit.
(7) The
				investment officer shall not invest in any certificate or certificates of
				deposit which contain early withdrawal penalties in excess of the minimum
				penalty required by federal laws.
(8) When deposits are cashed in or withdrawn,
				the certificate of deposit document(s) will be released from the fiscal agent
				in accordance with delivery instructions provided by the financial institution,
				but only after the state treasurer's office, state investment council or state
				investment officer takes physical receipt of all principal and interest due or
				owing to the state.
(9) The
				investment meets the asset allocation policy of these regulations;
(10) Granting the application is not in
				violation of applicable state law, these regulations, and/or other applicable
				regulations.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 22 - REGULATIONS GOVERNING THE INVESTMENT OF THE SEVERANCE TAX PERMANENT FUND IN OIL AND GAS PARTICIPATIONS › Section 2.60.22.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
State Investment Council.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 22 - REGULATIONS GOVERNING THE INVESTMENT OF THE SEVERANCE TAX PERMANENT FUND IN OIL AND GAS PARTICIPATIONS › Section 2.60.22.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
[RESERVED]
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 22 - REGULATIONS GOVERNING THE INVESTMENT OF THE SEVERANCE TAX PERMANENT FUND IN OIL AND GAS PARTICIPATIONS › Section 2.60.22.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Pursuant to Section
				7-27-5.7 NMSA 1978 the
				severance tax permanent fund may be invested in notes, obligations and
				mortgages held by banks and savings and loan associations which represent loans
				by such financial institutions upon the production potential of new oil and gas
				wells that have been drilled in New Mexico when such investments are
				recommended by the oil and gas production assistance council. The principal
				amount of such notes, obligations or mortgages purchased in any twelve month
				period may not exceed fifty million dollars and the total aggregate amount of
				purchases outstanding at any one time shall not exceed three hundred million
				dollars or ten percent of the book value of the fund, which ever is
				less.
B. The state investment
				council is required under Section
				7-27-5.7 NMSA 1978
				Subsection B,C,E to adopt regulations to provide for the terms and conditions
				for participation in the investment, to set limits on fees to be charged by the
				state and lending institutions and to determine the effective yield on
				investments at or not more than one percent below market rate but in no case
				less than seven percent. The purpose of these regulations is to implement the
				legislation.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 22 - REGULATIONS GOVERNING THE INVESTMENT OF THE SEVERANCE TAX PERMANENT FUND IN OIL AND GAS PARTICIPATIONS › Section 2.60.22.4 - DURATION

Current through Register Vol. 35, No. 13, July 16, 2024
[RESERVED]
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 22 - REGULATIONS GOVERNING THE INVESTMENT OF THE SEVERANCE TAX PERMANENT FUND IN OIL AND GAS PARTICIPATIONS › Section 2.60.22.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
[Filed July 12, 1989.]
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 22 - REGULATIONS GOVERNING THE INVESTMENT OF THE SEVERANCE TAX PERMANENT FUND IN OIL AND GAS PARTICIPATIONS › Section 2.60.22.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this investment program is to provide a
				  mechanism to encourage private New Mexico financial lending agencies to make
				  loans to qualified oil and gas producers to initiate the drilling of and
				  enhance the production from new oil and gas wells in the state and thereby
				  promote the economic welfare of New Mexico.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 22 - REGULATIONS GOVERNING THE INVESTMENT OF THE SEVERANCE TAX PERMANENT FUND IN OIL AND GAS PARTICIPATIONS › Section 2.60.22.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. "Lender" shall
				mean a New Mexico bank or savings and loan which has made loans based upon the
				production potential of new oil and gas wells drilled in New Mexico and desires
				to sell a participation in the notes, obligation of mortgages to the severance
				tax permanent fund.
B. "OGPAC"
				shall mean the oil and gas production assistance council as created in Section
				7-27-5.12 NMSA 1978.
C. "Production
				potential" of new oil and gas well(s) means the calculated fair market value of
				potential production of oil and gas reserves in New Mexico as determined by a
				qualified professional engineer based on evaluation of proven
				reserves.
D. "SIC" shall mean the
				state investment council.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 23 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE SEVERENCE TAX PERMANENT FUND SINGLE FAMILY › Section 2.60.23.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
State Investment Council.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 23 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE SEVERENCE TAX PERMANENT FUND SINGLE FAMILY › Section 2.60.23.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
[RESERVED]
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 23 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE SEVERENCE TAX PERMANENT FUND SINGLE FAMILY › Section 2.60.23.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
These council rules and regulations are issued under and
				  pursuant to Section 10 of Chapter 306 of the Laws of 1983 of the state of New
				  Mexico, being Section
				  7-27-5.3
				  NMSA 1978, (the "Pass-through Securities Investment Act"). These rules and
				  regulations apply to the purchase of the conventional mortgage pass-through
				  certificate in the original amount of up to $87,000,000 authorized by the
				  council by letter of August 29, 1984 or later. The council's rule 83-1
				  [repealed] continues to apply to the purchase of the conventional mortgage
				  pass-through certificate, in the amount of up to $100,000,000 previously
				  authorized by the council.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 23 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE SEVERENCE TAX PERMANENT FUND SINGLE FAMILY › Section 2.60.23.4 - DURATION

Current through Register Vol. 35, No. 13, July 16, 2024
[Permanent.]
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 23 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE SEVERENCE TAX PERMANENT FUND SINGLE FAMILY › Section 2.60.23.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
[Filed August 31, 1984]
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 23 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE SEVERENCE TAX PERMANENT FUND SINGLE FAMILY › Section 2.60.23.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
These council rules and regulations are established to
				  effectuate, and shall be applied so as to accomplish, the general purposes of
				  the Pass-through Securities Investment Act and the following specific
				  objectives:
A. the expansion of the
				supply of funds in the state available for new residential mortgages;
B. promotion of the economic well-being of
				the state through increased construction and opportunity for
				employment;
C. the regulation by
				the council of the authority and the mortgage lenders participating in the STM
				program;
D. the establishment of
				guidelines by the council for mortgage loans eligible for inclusion in the
				mortgage pass-through security; and
E. the determination of the yield required to
				be paid on the mortgage pass-through security pursuant to the Pass-through
				Securities Investment Act.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 23 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE SEVERENCE TAX PERMANENT FUND SINGLE FAMILY › Section 2.60.23.8 - REQUIREMENTS FOR MORTGAGE LENDERS

Current through Register Vol. 35, No. 13, July 16, 2024
A mortgage lender which desires to participate in the STM
				  program shall meet the following criteria:
A. If a commercial bank, its deposits must be
				insured by FDIC; if a savings institution, its deposits must be insured by
				FSLIC; and if a credit union, its deposits must be insured by NCUAB.
B. A mortgage lender must be approved by the
				FHA and VA to make FHA or VA loans.
C. A mortgage lender must demonstrate
				experience or expertise as determined by the authority in selling mortgage
				loans in the secondary market.
D. A
				mortgage lender must have a net worth of at least $250,000; and
E. A mortgage lender originating mortgage
				loans for the STM program must have its principal office in the state, and be
				authorized to initiate mortgages in the state.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 23 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE SEVERENCE TAX PERMANENT FUND SINGLE FAMILY › Section 2.60.23.9 - ALLOCATION OF FUNDS TO MORTGAGE LENDERS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Funds available to the authority by reason
				of the sale of its mortgage pass-through securities shall be allocated by the
				authority based upon instructions from the council among eligible mortgage
				lenders submitting applications. The allocation shall be based on the following
				criteria:
(1) the financial condition of the
				mortgage lenders submitting applications;
(2) the amount of residential mortgage loans
				made in the state by each mortgage lender submitting applications during a
				24-month period preceding the date of the application;
(3) the aggregate principal balances of
				mortgage loans offered for sale by each mortgage lender compared with the
				aggregate principal balances of mortgage loans offered for sale by all mortgage
				lenders;
(4) the aggregate
				principal balances of mortgage loans for new construction offered for sale by
				each mortgage lender compared with the aggregate principal balances of mortgage
				loans for new construction offered for sale by all mortgage lenders;
(5) the authority's assessment of the ability
				of the mortgage lender or its designated servicer to act as servicer of
				mortgage loans to be sold to the authority based upon, among other things, the
				experience of the mortgage lender or its designated servicer in the secondary
				mortgage market;
(6) equitable
				geographic distribution of the funds throughout the state, with an emphasis on
				broad geographic locations served;
(7) the mortgage lenders' abilities to
				deliver allocations, evaluated on the basis of prior performance in the STM
				program; and
(8) the minimum
				allocation to any mortgage lender shall be $500,000.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 23 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE SEVERENCE TAX PERMANENT FUND SINGLE FAMILY › Section 2.60.23.10 - OBLIGATIONS OF THE AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
With respect to the STM program, the authority shall comply
				  with the requirements set forth in this section as well as any other
				  requirements which may be adopted from time to time by the council to ensure
				  the continuity and efficacy of the STM program. The authority shall, through
				  regulation or some other means:
A.
				provide that at least 60 percent of the initial aggregate principal balances
				are earmarked for mortgage loans for new construction and the authority may not
				accept deliveries from mortgage lenders of mortgage loans not for new
				construction in excess of 40 percent of the total aggregate allocations; prior
				to the time that mortgage lenders deliver the entire total allocation, the
				issuance by the authority of the mortgage pass-through security, and the
				purchase of such security by the council, consisting of the mortgage loans
				already delivered, will comply with the requirements of the Pass-through
				Securities Investment Act;
B.
				provide that a fixed limit will be set on any pre-arranged commitments for new
				construction by mortgage lenders to builders or developers;
C. maintain a permanent manned office in New
				Mexico;
D. provide that interest
				rate subsidy plans be limited to buydowns and pledged accounts during the first
				three years of the mortgage loan;
E. provide that re-financings of an existing
				mortgage loan or loans for the present mortgagor shall not be included in the
				STM Program, except in the case of a rehabilitation of a single family
				residence, or to replace construction or bridge financing;
F. provide that no loans on mobile homes may
				be purchased by mortgage lenders for sale to the authority, however the
				authority may consider purchasing mortgage loans on manufactured
				housing;
G. provide that no more
				than 50 percent of the aggregate value of the mortgage loans may be on
				condominiums, PUD-units and zero lot line homes;
H. provide that each mortgage loan to be
				included in the mortgage pass-through security be made on an owner-occupied
				single family residence;
I. provide
				that all mortgage loans issued pursuant to the STM program shall be sold to the
				authority within nine months of receipt by the mortgage lender of notice of
				acceptance from the authority.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 23 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE SEVERENCE TAX PERMANENT FUND SINGLE FAMILY › Section 2.60.23.11 - REQUIREMENTS FOR MORTGAGE LOANS

Current through Register Vol. 35, No. 13, July 16, 2024
All mortgage loans which are included in any mortgage
				  pass-through security purchased by the council shall contain the following
				  minimum criteria:
A. be originated by
				a qualified mortgage lender;
B. be
				secured by a single family residence;
C. be a conventional mortgage;
D. have a maximum term which shall not be
				greater than thirty years and a minimum term which shall not be less than
				twenty years;
E. be made to an
				eligible mortgagor;
F. contain no
				prepayment penalties;
G. be freely
				assumable by an eligible assumptor, if the single family residence will be
				owner-occupied after assumption;
H.
				not exceed the dollar limit for FNMA approved mortgages, as in effect at the
				time the loans are originated;
I.
				have a maximum loan-to-value ratio of 80 percent, however mortgage loans with
				loan-to-value ratios of up to and including 95 percent may be considered for
				inclusion if such mortgage loans are subject to primary mortgage insurance in
				an amount sufficient to provide that the uninsured portion of the mortgage loan
				does not exceed 72 percent of the value of the property;
J. permit the mortgage lender to charge, as
				an origination fee, no more than 2 percent of the amount of the mortgage loan,
				to be allocated between the eligible mortgagor and the seller; and
K. such other requirements that an
				independent nationally recognized bond rating service would require to give a
				security purchased under the "Pass-through Securities Investment Act" a AA
				rating or higher.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 23 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE SEVERENCE TAX PERMANENT FUND SINGLE FAMILY › Section 2.60.23.12 - FEES AND CHARGES

Current through Register Vol. 35, No. 13, July 16, 2024
A. A commitment
				fee or fees shall be established and collected by the authority from each
				mortgage lender filing an application in such amount or amounts as the
				authority may deem appropriate. A portion of the commitment fee shall be
				non-refundable. The commitment fee or fees may be used for, among other
				purposes, reimbursing the authority for all or part of its reasonably-expected
				administrative costs of issuing the mortgage pass-through securities and of
				administering the STM program.
B.
				The authority may retain the difference between the interest rate on the
				mortgage loan and the face rate of the mortgage pass-through security to be
				purchased by the council, as established by the purchase agreement between the
				council and the authority, for its reasonably expected costs of acting as the
				master servicer for the mortgage pass-through security and to compensate
				lending institutions which act as sub-servicing agents of the
				authority.
C. The authority may
				establish such other charges, premiums and penalties as it shall deem to be
				necessary in connection with the administration of the STM program.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 23 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE SEVERENCE TAX PERMANENT FUND SINGLE FAMILY › Section 2.60.23.13 - YIELD TO SEVERANCE TAX PERMANENT FUND

Current through Register Vol. 35, No. 13, July 16, 2024
The yield to the severance tax permanent fund on the mortgage
				  pass-through security purchased by the council pursuant to the provisions of
				  the pass-through securities investment act shall be set from time to time by
				  the council in accordance with the Pass-Through Securities Investment
				  Act.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 23 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE SEVERENCE TAX PERMANENT FUND SINGLE FAMILY › Section 2.60.23.14 - AMENDMENT OF COUNCIL RULES AND REGULATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
The council rules and regulations may be amended by the
				  council at any time and from time to time.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 24 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE THIRD SEVERENCE TAX PERMANENT FUND SINGLE FAMILY MORTGAGE POOLING PROGRAM › Section 2.60.24.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
State Investment Council.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 24 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE THIRD SEVERENCE TAX PERMANENT FUND SINGLE FAMILY MORTGAGE POOLING PROGRAM › Section 2.60.24.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
These rules and regulations apply to the purchase of the
				  conventional mortgage pass-through certificates in the original amount of up to
				  $87,000,000, reduced by the principal amount of the certificate authorized by
				  and delivered pursuant to the council's rule 84-1 [now 2.60.23 NMAC] and by
				  letter agreement of August 29, 1984, as amended. The council's rule 84-1 [now
				  2.60.23 NMAC] continues to apply to the purchase of the conventional mortgage
				  pass-through certificate, in the amount of up to $87,000,000 which was
				  previously authorized by the council.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 24 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE THIRD SEVERENCE TAX PERMANENT FUND SINGLE FAMILY MORTGAGE POOLING PROGRAM › Section 2.60.24.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
These council rules and regulations are issued under and
				  pursuant to Section 10 of Chapter 306 of the Laws of 1983 of the state of New
				  Mexico, being Section
				  7-27-5.3
				  NMSA 1978, (the "Pass-through Securities Investment Act").
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 24 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE THIRD SEVERENCE TAX PERMANENT FUND SINGLE FAMILY MORTGAGE POOLING PROGRAM › Section 2.60.24.4 - DURATION

Current through Register Vol. 35, No. 13, July 16, 2024
[RESERVED]
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 24 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE THIRD SEVERENCE TAX PERMANENT FUND SINGLE FAMILY MORTGAGE POOLING PROGRAM › Section 2.60.24.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
[Filed March 28, 1985]
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 24 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE THIRD SEVERENCE TAX PERMANENT FUND SINGLE FAMILY MORTGAGE POOLING PROGRAM › Section 2.60.24.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
These council rules and regulations are established to
				  effectuate, and shall be applied so as to accomplish, the general purposes of
				  the Pass-through Securities Investment Act and the following specific
				  objectives:
A. the expansion of the
				supply of funds in the state available for new residential mortgages;
B. promotion of the economic well-being of
				the state through increased construction and opportunity for
				employment;
C. the regulation by
				the council of the authority and the mortgage lenders participating in the STM
				program;
D. the establishment of
				guidelines by the council for mortgage loans eligible for inclusion in the
				mortgage pass-through security; and
E. the determination of the yield required to
				be paid on the mortgage pass-through security pursuant to the Pass-through
				Securities Investment Act.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 24 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE THIRD SEVERENCE TAX PERMANENT FUND SINGLE FAMILY MORTGAGE POOLING PROGRAM › Section 2.60.24.8 - REQUIREMENTS FOR MORTGAGE LENDERS

Current through Register Vol. 35, No. 13, July 16, 2024
A mortgage lender which desires to participate in the STM
				  program shall meet the following criteria:
A. If a commercial bank, its deposits must be
				insured by FDIC; if a savings institution, its deposits must be insured by
				FSLIC; and if a credit union, its deposits must be insured by NCUAB.
B. A mortgage lender must be approved by the
				FHA and VA to make FHA or VA loans.
C. A mortgage lender must demonstrate
				experience or expertise as determined by the authority in selling mortgage
				loans in the secondary market.
D. A
				mortgage lender must have a net worth of at least $250,000, and
E. A mortgage lender originating mortgage
				loans for the STM program must have its principal office in the state, and be
				authorized to initiate mortgages in the state.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 24 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE THIRD SEVERENCE TAX PERMANENT FUND SINGLE FAMILY MORTGAGE POOLING PROGRAM › Section 2.60.24.9 - ALLOCATION OF FUNDS TO MORTGAGE LENDERS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Funds available to the authority by reason
				of the sale of its mortgage pass-through securities shall be allocated by the
				authority based upon instructions from the council among eligible mortgage
				lenders submitting applications. A preference will be given to mortgage lenders
				who participated in the program authorized by the council's rule 84-1 [now
				2.60.23 NMAC] (the "STM II program") in an amount equal to such mortgage
				lender's undelivered commitment under the STM II program. If any funds remain
				available after mortgage lenders with an available preference have received
				allocations, then the allocation of such available funds shall be based on the
				following criteria:
(1) the financial
				condition of the mortgage lenders submitting applications;
(2) the amount of residential mortgage loans
				made in the state by each mortgage lender submitting applications during a
				24-month period preceding the date of the application;
(3) the aggregate principal balances of
				mortgage loans offered for sale by each mortgage lender compared with the
				aggregate principal balances of mortgage loans offered for sale by all mortgage
				lenders;
(4) the aggregate
				principal balances of mortgage loans for new construction offered for sale by
				each mortgage lender compared with the aggregate principal balances of mortgage
				loans for new construction offered for sale by all mortgage lenders;
(5) the authority's assessment of the ability
				of the mortgage lender or its designated servicer to act as servicer of
				mortgage loans to be sold to the authority based upon, among other things, the
				experience of the mortgage lender or its designated servicer in the secondary
				mortgage market;
(6) equitable
				geographic distribution of the funds throughout the state, with an emphasis on
				broad geographic locations served;
(7) the mortgage lenders' abilities to
				deliver allocations, evaluated on the basis of prior performance in any
				previous STM program; and
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 24 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE THIRD SEVERENCE TAX PERMANENT FUND SINGLE FAMILY MORTGAGE POOLING PROGRAM › Section 2.60.24.10 - OBLIGATIONS OF THE AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
With respect to the STM program, the authority shall comply
				  with the requirements set forth in this section as well as any other
				  requirements which may be adopted from time to time by the council to ensure
				  the continuity and efficacy of the STM program. The authority shall, through
				  regulation or some other means:
A.
				provide that at least 60 percent of the initial aggregate principal balances
				are earmarked for mortgage loans for new construction and the authority may not
				accept deliveries from mortgage lenders of mortgage loans not for new
				construction in excess of 40 percent of the total aggregate allocations; prior
				to the time that mortgage lenders deliver the entire total allocation, the
				issuance by the authority of the mortgage pass-through security, and the
				purchase of such security by the council, consisting of the mortgage loans
				already delivered, will comply with the requirements of the Pass-through
				Securities Investment Act;
B.
				provide that a fixed limit will be set on any pre-arranged commitments for new
				construction by mortgage lenders to builders or developers;
C. maintain a permanent manned office in New
				Mexico;
D. provide that interest
				rate subsidy plans be limited to buy downs and pledged accounts during the
				first three years of the mortgage loan;
E. provide that re-financings of an existing
				mortgage loan or loans for the present mortgagor shall not be included in the
				STM program, except in the case of a rehabilitation of a single family
				residence, or to replace construction or bridge financing;
F. provide that no loans on mobile homes may
				be purchased by mortgage lenders for sale to the authority, however the
				authority may consider purchasing mortgage loans on manufactured
				housing;
G. provide that no more
				than 50 percent of the aggregate value of the mortgage loans may be on
				condominiums, pud-units and zero lot line homes;
H. provide that each mortgage loan to be
				included in the mortgage pass-through security be made on an owner-occupied
				single family residence;
I. provide
				that all mortgage loans issued pursuant to the STM program shall be sold to the
				authority within nine months of receipt by the mortgage lender of notice, of
				acceptance from the authority.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 24 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE THIRD SEVERENCE TAX PERMANENT FUND SINGLE FAMILY MORTGAGE POOLING PROGRAM › Section 2.60.24.11 - REQUIREMENTS FOR MORTGAGE LOANS

Current through Register Vol. 35, No. 13, July 16, 2024
All mortgage loans which are included in any mortgage
				  pass-through security purchased by the council shall contain the following
				  minimum criteria:
A. be originated by
				a qualified mortgage lender;
B. be
				secured by a single family residence;
C. be a conventional mortgage;
D. have a maximum term which shall not be
				greater than thirty years and a minimum term which shall not be less than
				twenty years;
E. be made to an
				eligible mortgagor;
F. contain
				noprepayment penalties;
G. be
				assumable by an eligible assumptor, if the single family residence will be
				owner-occupied after assumption and the eligible assumptor meets the applicable
				underwriting criteria;
H. not
				exceed the dollar limit for FNMA approved mortgages, as in effect at the time
				the loans are originated;
I. have a
				maximum loan-to-value ratio of 80 percent, however mortgage loans with
				loan-to-value ratios of up to and including 95 percent may be, considered for
				inclusion if such mortgage loans are subject to primary mortgage insurance in
				an amount sufficient to provide that the uninsured portion of the mortgage loan
				does not exceed 72 percent of the value of the property;
J. permit the mortgage lender to charge, as
				an origination fee,no more than 2 percent of the amount of the mortgage loan,
				to be allocated between the eligible mortgagor and the seller; and
K. such other requirements that an
				independent nationally recognized bond rating service would require to give a
				sescurity purchased under the "Pass-through Securities Investment Act" a AA
				rating or higher.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 24 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE THIRD SEVERENCE TAX PERMANENT FUND SINGLE FAMILY MORTGAGE POOLING PROGRAM › Section 2.60.24.12 - FEES AND CHARGES

Current through Register Vol. 35, No. 13, July 16, 2024
A. A commitment
				fee or fees shall be established and collected by the authority from each
				mortgage lender filing an application in such amount or amounts as the
				authority may deem appropriate. All or a portion of the commitment fee shall be
				nonrefundable. The commitment fee or fees may be used for, among other
				purposes, reimbursing the authority for all or part of the reasonably-expected
				administrative costs incurred by the authority in connection with the issuance
				of the mortgage pass-through securities and the administration of the STM
				program.
B. The authority may
				retain the difference between the interest rate on the mortgage loan and the
				face rate of the mortgage pass-through security to be purchased by the council,
				as established by the purchase agreement between the council and the authority,
				for its reasonably expected costs of acting as the master servicer for the
				mortgage pass-through security and to compensate lending institutions which act
				as sub-servicing agents of the authority.
C. The authority may establish such other
				charges, premiums and penalties as it shall deem to be necessary in connection
				with the administration of the STM program.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 24 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE THIRD SEVERENCE TAX PERMANENT FUND SINGLE FAMILY MORTGAGE POOLING PROGRAM › Section 2.60.24.13 - YIELD TO SEVERANCE TAX PERMANENT FUND

Current through Register Vol. 35, No. 13, July 16, 2024
The yield to the severance tax permanent fund on the mortgage
				  pass-through security purchased by the council pursuant to the provisions of
				  the Pass-through Securities Investment Act shall be set from time to time by
				  the council in accordance with the Pass-through Securities Investment
				  Act.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 24 - RULES AND REGULATIONS OF THE NEW MEXICO STATE INVESTMENT COUNCIL PERTAINING TO THE THIRD SEVERENCE TAX PERMANENT FUND SINGLE FAMILY MORTGAGE POOLING PROGRAM › Section 2.60.24.14 - AMENDMENT OF COUNCIL RULES AND REGULATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
The council rules and regulations may be amended by the
				  council at any time and from time to time.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 25 - NEW MEXICO STATE INVESTMENT COUNCIL STATEMENT OF INVESTMENT POLICY › Section 2.60.25.8 - INTRODUCTION

Current through Register Vol. 35, No. 13, July 16, 2024
A. As established
				by the New Mexico State Constitution and statutes, the New Mexico state
				investment office (office) manages two permanent trust funds under the
				directions of the New Mexico state investment council (council) and the state
				investment officer (SIO). These trust funds are the permanent fund (PF) and the
				severance tax permanent fund (STPF).
B. The state investment council was
				established by an act of the 23rd legislature which was approved on March 28,
				1957, and subsequently ratified by the citizens of New Mexico in the general
				election of 1958. According to the terms of this legislation, responsibility
				for the investment of the PF was transferred to the state investment officer,
				subject to the policy direction of the council. The state investment office
				became operational in January, 1959 as the administrative arm of the
				council.
C. Statutory authority for
				investment of the STPF by the council became effective July 1, 1983. The
				transition from the office of the state treasurer was completed on April 1,
				1985, when the $573 million certificate of deposit program was transferred to
				the state investment office.
D. It
				is the function of the office to provide, under the guidance of the council,
				the investment expertise and necessary support services for the PF and the
				STPF. The agency is responsible for the prudent investment of these funds in
				diversified sectors of the securities markets in order to maximize the total
				return of the funds while minimizing all forms of risk. The types of securities
				allowable for investment are defined by statute and may be further constrained
				by policy and objectives implemented by the council and the SIO.
E. This document is a summary of the
				applicable statutory provisions and the current policies established by the
				council and SIO.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 25 - NEW MEXICO STATE INVESTMENT COUNCIL STATEMENT OF INVESTMENT POLICY › Section 2.60.25.9 - PURPOSE OF THE FUNDS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Permanent fund: The purpose of the permanent fundis to hold in trust royalties
				and other funds received from state lands and to make distributions of income
				earned on these funds to the common schools and other designated institutions
				of the state. Since the fund is considered to be a common trust, it is invested
				in accordance with the prudent man rule and fiduciary law. The state investment
				council, as a fiduciary, has a duty to act solely in the interest of the fund's
				beneficiaries. A steady stream of income that maintains its value in real
				(inflation adjusted) dollars must be provided for the beneficiary institutions,
				while the real value of the corpus must be maintained for future generations
				who will need the fund's income to support these institutions.
B. Severance tax permanent fund:
(1) The purpose of the state of New Mexico
				severance tax permanent fund is to hold in trust that part of state revenues
				derived from excise taxes which have been or shall be designated severance
				taxes imposed upon the severance of natural resources within the state, in
				excess of that amount which has been or shall be reserved by statute for the
				payment of principal and interest on outstanding bonds to which severance tax
				revenue has been or shall be pledged, and to make distributions of the income
				earned on these funds to the general fund. Since the fund is a permanent trust
				fund, it shall be invested in accordance with the prudent man rule with the
				state investment officer and council acting as fiduciaries.
(2) The state investment council, as a
				fiduciary, has the responsibility and authority to establish policies for the
				investment of the severance tax permanent fund. The objective of the market
				rate portfolio in the severance tax permanent fund is to provide a steady
				stream of income that maintains its value in real (inflation adjusted) dollars,
				while maintaining the real value of the corpus for future generations. The
				objective of the differential rate portfolio in the severance tax permanent
				fund is to stimulate the economy of New Mexico on a continuing basis by
				maintaining a diversified portfolio of New Mexico investments, which expands
				business activity, promotes the creation and preservation of jobs, and provides
				a reasonable yield, as intended by the differential rate statutes.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 25 - NEW MEXICO STATE INVESTMENT COUNCIL STATEMENT OF INVESTMENT POLICY › Section 2.60.25.10 - INVESTMENT PHILOSOPHY AND OBJECTIVES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Principal Objectives: Based upon the two
				purpose statements in Section II [now Section 2.60.25.9 NMAC] above, the
				principal objectives of both funds are:
(1)
				the preservation of capital in real terms, while providing reasonable levels of
				income distribution to the beneficiaries;
(2) to obtain maximum returns within
				reasonable and acceptable levels of risk for all market rate investments;
				and
(3) to maintain a prudent and
				diversified portfolio of differential rate investments that stimulate the
				economy of the state while providing reasonable diversification and yield. In
				keeping with the permanent trust fund nature of both funds, all market rate
				investment objectives are based on a long term investment horizon.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 25 - NEW MEXICO STATE INVESTMENT COUNCIL STATEMENT OF INVESTMENT POLICY › Section 2.60.25.11 - ASSET ALLOCATION

Current through Register Vol. 35, No. 13, July 16, 2024
The most important component of investment strategy is the
				  portfolio asset mix, or the resource allocations between the various classes of
				  securities available to the council for investment purposes.
A. Current asset allocations and
				authorization: The council has currently authorized the SIO to increase the
				equity holdings to 30 percent of the book value of the PF and 20 percent of the
				book value of the STPF, and has directed that such weightings should be
				achieved by the end of fiscal year (FY) 81 (June 30, 1993). Equity holdings in
				the STPF are currently limited to 20 percent by statute. The council
				established these goals based on 1) the advise of the SIO, 2) the results of
				two asset allocations studies, and 3) the need to maintain current levels of
				income distributions to the beneficiaries. At the present time, the equity
				holdings in the two funds are substantially below the book value limitations
				listed above.
B. Strategic asset
				allocation targets and ranges: It has been recognized by the council that the
				two state permanent funds should have asset allocations similar to other major
				endowment funds in order to protect the corpus of the funds against inflation.
				The selected strategic asset allocation targets and ranges are as follows
				(based on market value):
(1) ASSET CLASS
				TARGET RANGE
(a) Cash and Equivalents. 5
				percent 0 - 15 percent
(b) Equities
				35 percent 30 - 40 percent
(c)
				Fixed Income 60 percent 55 - 65 percent
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 25 - NEW MEXICO STATE INVESTMENT COUNCIL STATEMENT OF INVESTMENT POLICY › Section 2.60.25.12 - GENERAL POLICIES AND PROCEDURES

Current through Register Vol. 35, No. 13, July 16, 2024
The following general operating policies and procedures will
				  be observed by the council staff in implementing the directives contained in
				  this document. Specific operating procedures for daily investment office
				  activities will be found in the state investment office operations
				  manual.
A. The investment office staff
				will follow the prudent man rule as defined in Article XII, Section 7 of the
				New Mexico Constitution in conducting all investment related
				activities.
B. The investment
				office staff may not delegate authority for making independent investment
				decisions to any agent or entity under contract to or doing business with the
				state investment council or office.
C. All transactions undertaken by the council
				staff shall be for the sole benefit of the funds' beneficiaries.
D. The council staff will maintain a separate
				broker policy which will define the standards and requirements for
				broker/dealers doing business with the council. This policy will be available
				for distribution to the public as desired.
E. A professional investment counseling firm
				(or firms) (advisor) shall be retained by the state investment office. The
				selected advisor(s) shall have expertise in all investment activities utilized
				by the state investment office.
F.
				The office shall employ the services of a professional performance measurement
				consultant to independently compute the performance of both funds.
G. The office will comply with the intent of
				the New Mexico statutes and all applicable provisions of the Open Meetings
				Act.
New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 25 - NEW MEXICO STATE INVESTMENT COUNCIL STATEMENT OF INVESTMENT POLICY › Section 2.60.25.13 - CASH INVESTMENT

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Constitutional and statutory restrictions: The only short term securities
				purchased are those specifically authorized in the New Mexico statutes.
				Currently, commercial paper (CP), repurchase agreements (repos), and banker's
				acceptances (BA) are specifically identified in Sections
				6-8-19 and
				7-27-5.1 NMSA 1978. If
				in doubt as to whether a particular type of security is authorized, legal
				opinions are solicited from the state attorney general's office. CP must be
				rated prime by a national rating service. Repos must be collateralized at 102
				percent or higher by obligations of the United States or other securities
				backed by the United States, and may only be purchased from broker/dealers that
				have a minimum net worth of $500 million. Banker's acceptances must be rated
				prime and issued by money center banks. Medium term notes (MTN) and other bonds
				must be rated at least A in the permanent fund (Section
				6-8-9 NMSA 1978), and at
				least BBB in the severance fund (Section
				7-27-5.1 NMSA
				1978).
B. Council goals and
				policies:
(1) The council has adopted the
				following goals for the management of the short term investment program (STIP)
				portfolios:
(a) safety and preservation of
				STIP capital through the maintenance of well-diversified portfolios of short
				term investments with high credit quality;
(b) maintenance of STIP liquidity to support
				the long term investment programs; and
(c) maximization of STIP current
				income.