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 2.60.7.8 - DESIGNATION PROCEDURES: FISCAL AGENT

Current through Register Vol. 35, No. 13, July 16, 2024
The state board of finance may accept and review proposals
				  from banks and savings and loan associations to be fiscal agent for the state
				  of New Mexico, submitted in response to a request for proposals issued in
				  conformance with the state Procurement Code and the applicable
				  regulations.
A. The board's request
				for proposals for designation of a fiscal agent shall include the following
				minimum qualifications and requirements.
(1)
				The bank or savings and loan association 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 or savings and
				loan association 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 ten million dollars ($10,000,000) containing
				terms and conditions acceptable to the state board of finance.
(3) The bank or saving and loan must agree
				that it will maintain at an approved custodial financial institution throughout
				the term of the agreement securities of the amount and kind specified by
				Sections
				6-10-35,
				6-10-16
				and
				6-10-17
				NMSA 1978, and approved by the board as security for the safekeeping of money
				of the state of New Mexico and the faithful performance of its duties as the
				fiscal agent. The amount of securities shall be (a) twenty-five million dollars
				($25,000,000), or (b) the amount of collateral as required by the state
				treasurer to comply with the state board of finance collateral policy,
				whichever is greater. The board may, by resolution, adjust these security
				requirements as it deems necessary to protect the interest of the
				state.
(4) The bank or savings and
				loan association must agree to wholly indemnify the state, for any and all
				loss, damage, cost, damages, expenses (including, without limitation, legal
				fees and expenses) and liability to the state (collectively hereinafter "loss")
				resulting from errors, omissions, fraud, embezzlement, theft, negligence or
				neglect (collectively hereinafter "actions or omissions") by the bank or
				savings and loan association, and its employees, officers, agents and directors
				in performing their duties hereunder or under agreement, as applicable. The
				bank or savings and loan association must also acknowledge and agree that any
				loss to the state shall, unless such loss can be demonstrated by the fiscal
				agent to have been due to a cause or causes beyond its reasonable control (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 fiscal
				agent could not have prevented the damage or loss resulting from any such
				event) be conclusively presumed to be the result of actions or omissions on the
				part of the fiscal agent. Limited exceptions to this indemnification
				requirement may be permitted in any agreement entered into by the board with
				the bank or savings and loan association as to information supplied to the
				fiscal agent by the state treasurer, pursuant to any funds transfer, ach,
				safekeeping or other collateral agreement, or any other state agency, or such
				other exception as may be required in order to enable the provision of a
				particular service by the bank or savings and loan associaton. Any such limited
				exception must be included in the fiscal agent agreement and be acceptable to
				and specifically approved by the board.
(5) The bank or savings and loan association
				must agree to comply with requirements of the financial institutions Reform,
				Recovery, and Enforcement Act and any other applicable law to avoid seizure by
				federal regulators of any assets the fiscal agent pledges to secure state
				deposits in accordance with Paragraph (3) of Subsection A of 2.60.7.8
				NMAC.