Chapter 58 — Chapter 58
1,014 sections in this chapter.
NMSA 1978, § 58-1-1 Short title
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Chapter 58, Articles 1, 2 through 6 and 8 NMSA 1978 may be cited as the "Banking Act". History: 1953 Comp., § 48-22-1, enacted by Laws 1963, ch. 305, § 1; 1997, ch. 23, § 1.
NMSA 1978, § 58-1-10 Authority to engage in leasing safe deposit facilities;
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subsidiary company. A. Subject to such regulations as the commissioner [director of the financial institutions division of the commerce and industry department] may prescribe, a state bank or safe deposit company may maintain and lease safe deposit boxes and may accept property o…
NMSA 1978, § 58-1-11 Access by fiduciaries
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A. Where access to a safe deposit box is requested by one or more persons acting as fiduciaries, the lessor may, except as otherwise expressly provided in the lease or the writings pursuant to which such fiduciaries are acting, allow access thereto and removal of the contents of …
NMSA 1978, § 58-1-12 Effect of lessee's death or incapacity
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Where a lessor, without knowledge of the death or of an adjudication of incapacity of the lessee, deals with his agent pursuant to a written power of attorney signed by such lessee, the transaction binds the lessee's estate and the lessee. History: 1953 Comp., § 48-22-12, enacted…
NMSA 1978, § 58-1-13 Lease to minor
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A lessor may lease a safe deposit box to and in connection therewith deal with a minor with the same effect as if leasing to and dealing with a person of full legal capacity. History: 1953 Comp., § 48-22-13, enacted by Laws 1963, ch. 305, § 13.
NMSA 1978, § 58-1-14 Search procedure on death
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A. A lessor shall permit the person named in a court order for the purpose, or if no order has been served upon the lessor, the spouse, a parent, an adult descendant or a person named as an executor in a copy of a purported will produced by him, to open and examine the contents o…
NMSA 1978, § 58-1-15 Adverse claims to contents of safe deposit box
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A. An adverse claim to the contents of a safe deposit box, or to property held in safekeeping, is not sufficient to require the lessor to deny access to its lessee unless: (1) the lessor is directed to do so by a court order issued in an action in which the lessee is served with …
NMSA 1978, § 58-1-16 Special remedies for nonpayment of rent
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A. If the rental due on a safe deposit box has not been paid for six months, the lessor may send a notice by certified or registered mail to the last known address of the lessee stating that the safe deposit box will be opened and its contents stored at the expense of the lessee …
NMSA 1978, § 58-1-17 Qualification and fiduciary powers
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No state bank shall act as fiduciary unless it is authorized by its articles of incorporation and has a permit from the commissioner [director of the financial institutions division of the regulation and licensing department]. The commissioner [director] shall not grant the permi…
NMSA 1978, § 58-1-18 Fiduciary bond or oath excused
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No oath or bond shall be required of a bank to qualify upon appointment as a fiduciary, unless the instrument creating a fiduciary position expressly otherwise provides. History: 1953 Comp., § 48-22-18, enacted by Laws 1963, ch. 305, § 18.
NMSA 1978, § 58-1-19 Identification and segregation of fiduciary assets;
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investment and deposit of cash. A state bank holding any asset as a fiduciary shall: A. segregate all such assets from any other assets of the bank and from the assets of other trusts, except as may be permitted by the Uniform Common Trust Fund Act [46- 1-13 to 46-1-16 NMSA 1978]…
NMSA 1978, § 58-1-2 Definitions of banks
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As used in the Banking Act [Chapter 58, Articles 1, 2 to 6 and 8 NMSA 1978]: A. "bank" means: (1) an "insured bank" as defined in Section 3(h) of the Federal Deposit Insurance Act; (2) any institution that is eligible to make application to become an insured bank pursuant to Sect…
NMSA 1978, § 58-1-2.1 Prohibition
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No bank holding company may own an institution which is an "insured bank" as defined in Section 3 (h) of the Federal Deposit Insurance Act or is eligible to make application to become an insured bank pursuant to Section 5 of the Federal Deposit Insurance Act and accepts deposits …
NMSA 1978, § 58-1-20 Reserves against deposits
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A. A state bank shall maintain such reserves against deposits as may be required by the director or, if the state bank is a member of the federal reserve system, by the Federal Reserve Act or by the board of governors of the federal reserve system. B. The reserve fund shall consi…
NMSA 1978, § 58-1-21 Loans
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A. A state bank may lend on the security of the personal obligation of the borrower. B. A state bank may lend on the security of personal property but shall not make any loan on the security of its own stock, of stock of another bank where the borrower owns, controls or holds wit…
NMSA 1978, § 58-1-22 Investments
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A. In addition to other investments expressly authorized by the Banking Act, a state bank may: (1) purchase or discount obligations that satisfy the requirements of the Banking Act for loans; (2) purchase or discount obligations of the United States or a state of the United State…
NMSA 1978, § 58-1-23 Acceptances
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A. A bank may accept: (1) a draft which has not more than one hundred eighty days sight to run, exclusive of days of grace, and is drawn to finance the purchase of goods, with maturity in accordance with the original terms of purchase, or is secured by shipping documents transfer…
NMSA 1978, § 58-1-24 Diversification of loans and investments
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A. A state bank shall not extend credit directly by means of discount notes, issuance of letters of credit, acceptance of drafts or otherwise, or purchase any bond, note, bill of exchange or any evidence of indebtedness, when by reason of such extension of credit or purchase, the…
NMSA 1978, § 58-1-25 Acquisition of property to satisfy or protect previous loan
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A state bank may take property of any kind to satisfy or protect a loan previously made in good faith and in the ordinary course of business. Property acquired in satisfaction of a loan shall be held subject to the limitations in this section. A. Stock shall be sold within one hu…
NMSA 1978, § 58-1-26 Acquisition of banking premises and equipment
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A. A state bank may acquire real estate and equipment and improve real estate to be used in the transaction of its business and may rent to others any space so acquired in a building in excess of actual need. Unless a larger investment is authorized by the commissioner [director …
NMSA 1978, § 58-1-27 Sale of assets in ordinary course
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A bank may sell any asset in the ordinary course of business, or with the approval of the commissioner [director of the financial institutions division of the regulation and licensing department] in any other circumstance, but the sale of all or substantially all of the assets of…
NMSA 1978, § 58-1-28 Borrowing
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A state bank may borrow money and issue evidence of indebtedness for a loan for temporary purposes in an amount not exceeding its capital and surplus or in such larger amount or for such other purposes as the commissioner [director of the financial institutions division of the re…
NMSA 1978, § 58-1-29 Issuance of capital debentures or notes
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A. After obtaining approval of the commissioner [director of the financial institutions division of the regulation and licensing department] and the approval of the stockholders owning two-thirds of the issued and outstanding shares of stock of the bank entitled to vote, a bank m…
NMSA 1978, § 58-1-3 Definitions
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As used in the Banking Act, unless the context otherwise requires: A. "action" in the sense of a judicial proceeding means any proceeding in which rights are determined; B. "allowances for loan and lease losses" means the difference between: (1) the balance of the valuation reser…
NMSA 1978, § 58-1-30 Pledge of assets
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A bank may pledge its assets to: A. enable it to act as agent for the sale of obligations of the United States; B. secure borrowed funds; or C. secure deposits when the depositor is required to obtain such security by the laws of the United States, the terms of any interstate com…
NMSA 1978, § 58-1-31 Endorsement and signature guaranty and unauthorized
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assumption of liability. A. A state bank may assume secondary liability as an endorser of a negotiable or nonnegotiable instrument, which it owns or has received for collection. A state bank may assume the liability of the guarantor of the genuineness of a signature. B. Except as…
NMSA 1978, § 58-1-32 Director of the financial institutions division; appointment
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and qualifications; salary. Upon the effective date of the Commerce and Industry Department Act, the title of the commissioner of banking shall be changed to the "director of the financial institutions division". All powers and duties heretofore vested by law or otherwise in the …
NMSA 1978, § 58-1-33 Oath of secrecy; surety bonds
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The director and all officers and employees of the division shall, before entering upon the discharge of their duties, in addition to any oath required by the constitution of New Mexico, take and subscribe an oath to keep secret all information acquired by them in the discharge o…
NMSA 1978, § 58-1-34 Powers of director
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A. In addition to other powers conferred by law, the director has power to: (1) restrict the withdrawal of deposits from all or one or more state banks where he finds that extraordinary circumstances make such restriction necessary for the property protection of depositors in the…
NMSA 1978, § 58-1-35 Employees [Examiners] and clerks; designation of deputy
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The commissioner [director of the financial institutions division of the regulation and licensing department] may appoint and employ such examiners and clerks as the business of his office may require and as may be provided for by law at such salaries, payable out of the salary f…
NMSA 1978, § 58-1-36 Seal of the director
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The director shall have a seal of office containing the words "Director of the Financial Institutions Division of the Regulation and Licensing Department", in the form of a circle and containing the word "Seal" within the circle. History: 1953 Comp., § 48-22-33.2, enacted by Laws…
NMSA 1978, § 58-1-37 Office of the commissioner [director]; delegation of
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powers. The commissioner [director of the financial institutions division of the regulation and licensing department] shall maintain an office at the state capitol in Santa Fe. He may delegate to his deputies such of his powers and authorities as he may see fit, and such deputy o…
NMSA 1978, § 58-1-38 Divulging information prohibited; exchange of information
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with United States; violation a misdemeanor. Neither the commissioner [director of the financial institutions division of the regulation and licensing department], nor his deputies or employees, nor the state corporation commission [public regulation commission], nor any member t…
NMSA 1978, § 58-1-39 Bank records; prescribing manner of keeping
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A. The director has the power to require banks under his supervision to keep their records in such manner and form that they will at all times reflect the true condition of the bank and permit it to be readily and thoroughly audited. B. Every state bank shall retain its business …
NMSA 1978, § 58-1-4 Effect on existing banks
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The articles of incorporation of state banks existing at the time of the adoption of the Banking Act shall continue in full force and effect, but all state banks and, to the extent applicable, all banks shall thereafter be operated in accordance with the provisions of the Banking…
NMSA 1978, § 58-1-40 Reports of condition; special reports; failure to make;
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penalty. Every bank shall make and file with the director reports not to exceed five in number during the calendar year, according to the form that may be prescribed by the director, verified by the oath of the president or cashier of incorporated banks and attested by the signat…
NMSA 1978, § 58-1-41 Supervision fees
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A. Each state bank shall annually pay to the director a supervision fee. The amount of the supervision fee paid by each state bank is computed as follows, based upon assets as of December 31: If the bank's total assets are– The assessment is– Over– (Thousand) But not over– (Thous…
NMSA 1978, § 58-1-41.1 Trust department examination; fees
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At least once in each calendar year, the director of the financial institutions division of the regulation and licensing department shall cause to be examined the condition of the trust department of each state bank exercising trust powers. A report of examination shall be sent t…
NMSA 1978, § 58-1-41.2 Additional examinations
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Whenever a bank is examined more than once in any calendar year as provided in Section 58-1-46 NMSA 1978, the bank shall pay to the financial institutions division of the regulation and licensing department an amount determined by the director to be sufficient to reimburse the di…
NMSA 1978, § 58-1-42 Repealed
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ANNOTATIONS Repeals. — Laws 1999, ch. 213, § 10 repeals 58-1-42 NMSA 1978, as enacted by Laws 1975, ch. 330, § 26, relating to fees for filing reports and certificates, effective June 18, 1999. For provisions of former section, see the 1998 NMSA 1978 on NMOneSource.com.
NMSA 1978, § 58-1-43 Fees and penalties; disposition
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The director shall keep a record of all fees and penalties collected by him and all expenses of his office. At the end of each month, unless otherwise provided by law, he shall turn over to the state treasurer all money collected during the month, together with a verified stateme…
NMSA 1978, § 58-1-44 Copies of reports and records; evidence; fees
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Copies of all reports and records concerning banks and banking filed in the office of the commissioner [director of the financial institutions division of the regulation and licensing department] or in the office of the state corporation commission [public regulation commission],…
NMSA 1978, § 58-1-45 Court review
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Any person aggrieved and directly affected by an order of the director may appeal to the district court pursuant to the provisions of Section 39-3-1.1 NMSA 1978. History: 1953 Comp., § 48-22-34, enacted by Laws 1963, ch. 305, § 34; 1998, ch. 55, § 52; 1999, ch. 265, § 55.
NMSA 1978, § 58-1-46 Examinations and reports
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A. The director shall examine the condition of each state bank at least once in each twelve-month period. A report of examination shall be sent to the board of directors of the organization examined. B. A bank may be examined within each eighteen-month period if: (1) the bank has…
NMSA 1978, § 58-1-47 Commissioner's [Director's] annual report
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A. The commissioner [director of the financial institutions division of the regulation and licensing department] shall report to the governor annually. His report shall include: (1) the text of all rules of general application the department has adopted or altered since his last …
NMSA 1978, § 58-1-48 Records of division
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Information from the records of the division shall be revealed only with the consent of the director. The records of the division are not public records. Any examination reports, financial information contained in applications for charters or files on investigations relating to v…
NMSA 1978, § 58-1-49 Banking interests of officers and employees of the
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department of banking [financial institutions division] No officer or employee of the department [financial institutions division of the regulation and licensing department] shall be an officer, director, trustee, attorney, owner, shareholder or partner in any bank, nor receive, …
NMSA 1978, § 58-1-5 Deposit of minor; school or institutional deposits
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A. A bank may operate a deposit account in the name of a minor or in the name of two or more persons, one or more of whom are minors, with the same effect upon its liability as if such minors were of full age. B. Subject to such regulations as the commissioner [director of the fi…
NMSA 1978, § 58-1-50 Limitation of personal liability
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No officer or employee of the department [financial institutions division of the regulation and licensing department] shall be liable in any civil action for damages for any act done or omitted in good faith in performing the functions of his office. History: 1953 Comp., § 48-22-…
NMSA 1978, § 58-1-51 Standards in regulations
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The commissioner [director of the financial institutions division of the regulation and licensing department], in the exercise of the power to make rules and issue regulations pursuant to the Banking Act, shall act in the interests of promoting and maintaining a sound banking sys…