New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 15 - COLLATERAL POLICY FOR NEW MEXICO SAVINGS AND LOAN ASSOCIATIONS GOVERNING CERTIFICATES OF DEPOSIT CREATED AFTER MAY 25, 1988 › Section 2.60.15.9 - GENERAL

Current through Register Vol. 35, No. 13, July 16, 2024
A. In the event of
				a premature withdrawal of deposits, the savings and loan association may impose
				the minimum penalty provided by federal law.
B. The figures to be used by the investment
				officer in the risk-assessment analyses shall be calculated by each savings and
				loan association, including those relying on FSLIC insurance, from the
				quarterly federal home loan bank report and shall be furnished to the
				investment officer no later than the tenth day of the second month following
				that quarter, provided however, if the tenth day falls on a weekend or legal
				holiday, the figures shall be submitted on the next business day. The figures
				provided to the state investment officer by the savings and loan association
				shall be certified in writing by the president of the savings and loan
				association, an executive officer of the savings and loan, or a person
				authorized by corporate resolution of the savings and loan association to
				certify the information. The state investment officer shall, at any time
				between quarterly reporting periods, request additional certified information,
				as needed, to assess the risk level of any savings and loan association. If a
				savings and loan association fails to provide the requested information, it
				shall be required to maintain collateral in the form of securities or
				mortgages, as appropriate, with an aggregate market value equal to or greater
				than 100 percent of the amount of deposit for securities and an aggregate
				outstanding principal balance equal to or greater than 120 percent of the
				deposit for mortgages, as applicable.
C. The investment officer is also directed to
				require each savings and loan association which has had a final administrative
				enforcement action imposed upon it to advise the investment officer of such
				action. If the investment officer believes such action indicates a high level
				of risk in maintaining public deposits in that institution, he shall report to
				the council, who shall decide whether additional collateral will be
				required.
D. Notwithstanding any of
				the above provisions, the state investment officer may make an emergency
				withdrawal of state deposits prior to maturity when in his judgment such action
				is necessary in the exercise of reasonable care to protect state
				funds.
E. If a savings and loan
				association believes that exceptional circumstances exist indicating it would
				not be appropriate for the investment officer to take any of the actions listed
				above, the savings and loan association shall appear at a meeting of the state
				investment council to present its position. The council may at that time vote
				on whether an exception to the policy will be allowed, or the council may
				continue the issue in order to take further evidence, testimony or advice. In
				order to be placed on the council's agenda, the institution shall submit a
				written request, stating its position, to the investment office at least 10
				calendar days prior to the meeting, including a bill of particulars, copies of
				any statutes or cases it intends to use in its presentation as well as a list
				of names, titles and business addresses and phone numbers of anyone whose
				testimony it deems necessary.
F.
				The state investment officer is further directed to take immediate and prudent
				steps to initiate this policy.
G.
				Nothing herein shall restrict the state treasurer, state investment officer or
				the state investment council from the lawful exercise of rights and duties
				conferred by law.