New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 79 - INDIVIDUAL DEVELOPMENT ACCOUNTS › Part 1 - GENERAL PROVISIONS › Section 2.79.1.13 - INDIVIDUAL DEVELOPMENT ACCOUNT SAVINGS ACCOUNTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. A program administrator shall apply
				criteria for minimum and maximum levels of deposit and minimum number of months
				that may go by without a deposit into the account. These criteria may be
				determined based upon the circumstances of the population to be
				served.
B. A program administrator
				approved by the director shall maintain a separate trust or custodial account
				for each account owner in an authorized financial institution. The trust
				account shall be an interest-bearing savings instrument not less favorable to
				the depositor than the rates and fees of prevailing market rate accounts of
				each participating financial institution, applicable to like deposits by
				financial institutions in this state, bearing rates and fees at least as
				favorable to the depositor as the best terms available to other customers with
				similar accounts at each participating financial institution.
C. To the extent that available funding,
				including funding from both public and non-public sources may allow, the match
				rate shall be at least one dollar ($1.00) for each one dollar ($1.00) deposited
				by the account owner into his individual development account.
D. An eligible individual may open an
				individual development account upon verification by the program administrator
				that the individual maintains no other individual development account and
				fulfillment of all other requirements of the act and these rules.
E. An account owner shall complete a
				financial education program and all requirements made by the program
				administrator prior to the withdrawal of money from the account.
F. No withdrawal of funds from any individual
				development savings account may be permitted by a financial institution without
				signatures of both the account owner and an authorized representative of the
				program administrator. The financial institution in which an individual
				development account is held shall not be liable for withdrawals made for uses
				other than allowable uses. Prior to consenting to any withdrawal of funds, a
				representative of the program administrator shall discuss with the account
				owner the consequences of the intended withdrawal of funds. The program
				administrator may not unreasonably withhold its consent to the
				withdrawal.
G. The account owner
				may, upon the approval of the program administrator, withdraw moneys from the
				account owner's individual development account in the form of a joint check or
				transfer of funds made payable to the account owner and the payee of the
				approved withdrawal for any of the following allowable uses:
(1) expenses to attend an approved
				post-secondary or vocational educational institution, including, but not
				limited to, payment for tuition, books, supplies and equipment required for
				courses;
(2) costs to acquire or
				construct a principal residence that is the first principal residence acquired
				or constructed by the account owner;
(3) costs of major home improvements or
				repairs on the principal residence of the account owner;
(4) capitalization or costs to start or
				expand a business including equipment, tangible personal property, operational
				and inventory expenses, legal and accounting fees and other costs normally
				associated with starting or expanding a business; and
(5) acquisition of a vehicle necessary to
				obtain or maintain employment by an account owner or the spouse of an account
				owner.