New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 4 - DEPOSITORY BANK REQUIREMENTS, COLLATERAL LEVEL REQUIREMENTS, AND CUSTODIAL BANK REQUIREMENTS › Section 2.60.4.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
A. Section
				6-1-1
				Part E NMSA 1978 states that the state board of finance has general supervision
				of the fiscal affairs of the state and of the safekeeping and depositing of all
				money and securities belonging to or in custody of the state.
B. Section
				6-10-10
				Part C NMSA 1978 provides that the state treasurer may deposit money in one or
				more accounts with any bank, savings and loan association, or credit union
				whose deposits are insured by an agency of the United States to receive public
				money or deposits.
C. Sections
				6-10-16
				and
				6-10-16.1
				NMSA 1978 provide for the type of securities of the United States and the state
				of New Mexico, including surety bonds as provided in Section
				6-10-15, to
				be used as collateral for deposits of public funds.
D. Section
				6-10-17
				NMSA 1978 provides that any financial institution designated as a depository of
				public money shall deliver securities having an aggregate value of at least
				one-half the amount of public money to be deposited to a custodial bank and
				shall deliver a joint safekeeping receipt issued by the custodial bank to the
				public official from whom the public money is received for deposit.
E. Section
				6-10-17.1
				NMSA 1978 provides that when a depository bank has not maintained qualifying
				securities as collateral for deposits of public money, the state treasurer or
				board shall request the depository bank to provide additional qualifying
				securities to meet those requirements within ten (10) calendar days. If the
				depository bank does not comply, the board or state treasurer shall withdraw
				all deposits of public money within the next ten (10) calendar days without
				penalty to the public depositor.
F.
				Section
				6-10-18
				NMSA 1978, requires any financial institution designated as a depository of
				public money to enter into a written agreement to assure that collateral it
				pledges as security remains secure throughout the term of the
				designation.
G. Section
				6-10-20 NMSA
				1978 provides that the board may at any time within its discretion require any
				depository financial institution to furnish additional security for deposit of
				the kind specified in Section
				6-10-16
				NMSA 1978.
H. Section
				6-10-21
				NMSA 1978, authorizes and directs the board to regulate the safekeeping of
				securities pledged as collateral by depository banks and requires the board to
				designate the third-party custodial banks charged with safekeeping that
				collateral pursuant to contracts between the two financial institutions and the
				state.
I. Section
				6-10-24.1
				NMSA 1978, bars the state treasurer from depositing public money in a financial
				institution in an amount that exceeds 400 percent of the total equity capital
				in the case of banks or 400 percent of the net worth in case of savings and
				loan associations, or 25 percent of the total of the financial institution's
				deposits, whichever is less.