New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 60 - INVESTMENT AND DEPOSIT OF PUBLIC FUNDS › Part 17 - COLLATERAL POLICY FOR NEW MEXICO BANKS GOVERNING CERTIFICATES OF DEPOSIT CREATED AFTER MAY 25, 1988 › Section 2.60.17.9 - GENERAL

Current through Register Vol. 35, No. 13, July 16, 2024
A. In the event of
				a premature withdrawal of deposits, the bank 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 bank, including those relying on FDIC insurance
				instead of collateral, from the quarterly call statements 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 bank shall be
				certified in writing by the president of the bank, an executive officer of the
				bank, or a person authorized by corporate resolution of the bank to certify the
				information. The investment officer shall, at any given time between quarterly
				reporting periods, request additional certified information from the bank, as
				needed to assess the risk level of any bank. If a bank 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 bank 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 bank, he shall report to the council, and
				they shall decide whether additional collateral or actions 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 judgement it is
				necessary in the exercise of reasonable care to protect state funds.
E. If a bank believes that exceptional
				circumstances exist indicating that it would not be appropriate for the
				investment officer to take any of the actions listed above, the bank 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 it 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 to the state investment office at least 10 calendar
				days prior to the meeting, a written request stating its position to the
				investment office 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 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.